2. The applicants are different. As far as bankruptcy liquidation is concerned, except for creditors and debtors, when an enterprise has been dissolved but has not been liquidated or has not been liquidated, and the assets are insufficient to pay off debts, the person liable for liquidation according to law shall apply to the people's court for bankruptcy liquidation. For bankruptcy reorganization, the debtor or creditor may apply to the court for bankruptcy reorganization. At the same time, after the people's court accepts the bankruptcy application and before declaring the debtor bankrupt, the debtor or the shareholders whose capital contribution accounts for more than one tenth of the registered capital of the debtor may apply to the people's court for reorganization. In addition, if commercial banks, securities companies, insurance companies and other financial institutions go bankrupt, the State Council financial supervision and regulation institutions may apply to the people's court for reorganization or bankruptcy liquidation of the financial institutions.
3. The application time is different. With regard to bankruptcy reorganization, as long as an enterprise as a legal person may obviously lose its solvency, the debtor or creditor may directly apply to the people's court for reorganization of the debtor. Bankruptcy liquidation is put forward on the premise that the debtor has gone bankrupt, that is, the debtor can't pay off the debts due, and the assets are not enough to pay off all the debts or obviously lack solvency.
4. Different measures can be taken. Bankruptcy and reorganization enterprises can use a variety of reorganization measures to achieve the purpose of restoring operational capacity, paying off debts and avoiding bankruptcy. In addition to postponing or reducing the repayment of debts, it can also transfer all or part of the equity without compensation, reduce or increase the registered capital, issue new shares or bonds to specific targets, convert creditor's rights into equity, and transfer operations or assets. In the case of bankruptcy liquidation, the administrator can only change the price and distribute the bankruptcy property, and there are few measures that can be taken.
5. The restrictions on security interests are different. In the bankruptcy liquidation procedure, the creditor who enjoys the security right to the bankrupt's specific property enjoys the priority of compensation, that is, the right of exemption, and the exercise of the priority of compensation to the specific property is not restricted by the bankruptcy liquidation procedure. However, during the reorganization, in order to ensure that the debtor will not be affected by the execution of the secured property, the law explicitly suspends the use of the security right enjoyed by the debtor's specific property. Unless the collateral is likely to be damaged or its value is obviously reduced enough to endanger the rights of the secured creditor, the secured party may request the court to resume the exercise of the security right.
Legal basis: Enterprise Bankruptcy Law of the People's Republic of China.
Article 7 The debtor may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation under the circumstances specified in Article 2 of this Law.
If the debtor is unable to pay off the debts due, the creditor may apply to the people's court for reorganization or bankruptcy liquidation of the debtor.
Article 113 After the bankruptcy expenses and debts are paid off first, the bankruptcy property shall be paid off in the following order:
(1) Wages, medical care, disability allowance and pension expenses owed by the bankrupt to employees, basic old-age insurance and basic medical insurance expenses owed to employees' personal accounts, and compensation that should be paid to employees according to laws and administrative regulations;
(2) Social insurance premiums and taxes owed by the bankrupt other than those specified in the preceding paragraph;
(3) Ordinary bankruptcy claims.
If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion.
The wages of directors, supervisors and senior managers of bankrupt enterprises shall be calculated according to the average wages of employees of the enterprise.
Article 114 The distribution of bankruptcy property shall be in the form of monetary distribution. However, unless otherwise decided by the creditors' meeting.