What does it mean to go bankrupt?

Legal analysis: the bankruptcy of a company means that the company can't continue to operate because it can't pay off its due debts, and the court announces that it will stop operating and clean up its creditor's rights and debts.

Legal basis: Enterprise Bankruptcy Law of the People's Republic of China.

Article 2 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.

Article 3 Bankruptcy cases shall be under the jurisdiction of the people's court of the debtor's domicile.