What do you mean by business failure? What are the procedures?

1. What is the meaning of enterprise bankruptcy? Bankruptcy refers to a legal system in which the creditor or debtor requests the court to declare bankruptcy and repay the debt according to the bankruptcy procedure when the debtor is unable to repay the debt or insolvent. The narrow bankruptcy system only refers to the bankruptcy liquidation system, and the broad bankruptcy system also includes the reorganization and reconciliation system. Bankruptcy refers to a kind of enterprise behavior and economic behavior in most cases. However, people are sometimes used to saying that individuals or companies stop operating, which is also called bankruptcy. Enterprise bankruptcy refers to the enterprise behavior that due to poor management, when the liabilities reach or exceed all the assets occupied, it is impossible to pay off the debts due and the assets are insolvent. Two. Application of Bankruptcy Cases Bankruptcy cases refer to insolvency events handled through judicial procedures. The judicial procedures mentioned here include three kinds: reconciliation, reorganization and bankruptcy liquidation. Bankruptcy cases cannot be simply summed up as liquidation bankruptcy events; Bankruptcy liquidation is a way of clearing debts fairly, but there are other ways. China's Enterprise Bankruptcy Law (hereinafter referred to as "Bankruptcy Law") encourages parties to actively seek fair repayment of debts by avoiding enterprise liquidation. There is a certain degree of convertibility between reorganization, reconciliation and bankruptcy liquidation. Between them, the parties have a certain degree of freedom of choice. Specifically, it includes the following points: (1) The debtor can choose to apply reorganization procedure, reconciliation procedure or liquidation procedure when filing a bankruptcy application, and the creditor can choose to apply reorganization procedure or liquidation procedure when filing a bankruptcy application. (2) Before the bankruptcy declaration, if the creditor applies for bankruptcy liquidation, the debtor may apply for reconciliation, and the debtor or its investors may apply for reorganization. (3) Where the debtor applies for bankruptcy liquidation, before the bankruptcy declaration, the creditor or the debtor's investors may apply for reorganization, and the debtor may also apply for reconciliation. (4) After the debtor enters the reorganization procedure or reconciliation procedure, if there are specific reasons stipulated in the bankruptcy law, it may be transferred to the bankruptcy liquidation procedure after the bankruptcy declaration. (5) Once the debtor is declared bankrupt and enters bankruptcy liquidation procedure, it shall not be transferred to reorganization or reconciliation procedure. Enterprise bankruptcy means that the company can no longer support the company's operation, so managers file a bankruptcy application with the court. At the same time, during the bankruptcy of the company, creditors or debtors may apply for reorganization and liquidation. The company has a certain chance to continue to operate. Sometimes, some managers will make a plan according to the actual situation of their own company to help enterprises tide over the difficulties.