1. The company can file for bankruptcy if it has a lawsuit. The factual basis for the court to judge that a company can go bankrupt and liquidate is whether the company has the ability to pay off the debts due, and it has nothing to do with whether the company is involved in litigation. When the company brings a lawsuit, if the people's court has accepted the bankruptcy application, it is necessary to temporarily suspend the original lawsuit.
2. Legal basis: Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China.
If an enterprise as a legal person is unable to pay off its due debts, its assets are insufficient to pay off all its debts or it obviously lacks solvency, it shall clear up its debts in accordance with the provisions of this Law.
An enterprise as a legal person may be reorganized in accordance with the provisions of this law if it has the circumstances specified in the preceding paragraph or obviously loses its solvency.
2. What is the process for the company to apply for bankruptcy?
The bankruptcy of a company shall go through the following legal procedures:
1, bankruptcy application. Bankruptcy application refers to the request made by the parties to the court to declare the company bankrupt;
2. Accept bankruptcy. After the people's court decides or accepts the bankruptcy case of the company, it shall notify the debtor and known creditors within 10 days and make an announcement. The creditor shall, within 30 days after receiving the notice, and the creditor who has not received the notice shall, within 3 months from the date of announcement, declare the creditor's rights to the people's court, explain whether the amount of the creditor's rights is secured by property, and submit supporting materials. Failing to declare the creditor's rights within the time limit shall be deemed as a waiver of the creditor's rights;
3. Bankruptcy settlement agreement; Bankruptcy reconciliation refers to a system in which after the people's court accepts the application for reconciliation or bankruptcy, before declaring the debtor bankrupt, the debtor and the creditor reach a settlement agreement on the debtor's delay in paying off debts and reducing the amount of debts, and terminate the bankruptcy procedure after being approved by the people's court;
4. declare bankruptcy. When the court hears the bankruptcy application filed by the creditor or debtor and confirms that the legal conditions are met, it can declare bankruptcy;
5. Bankruptcy liquidation. According to the Company Law, if a company is declared bankrupt according to law because it cannot pay off its due debts, the people's court shall, in accordance with the provisions of relevant laws, organize shareholders, relevant authorities and relevant professionals to set up a liquidation group to conduct bankruptcy liquidation of the company;
6. Bankruptcy ends. Bankruptcy termination refers to the court ruling on the end of bankruptcy proceedings.