Legal basis: Enterprise Bankruptcy Law of the People's Republic of China.
Article 43 Bankruptcy expenses and beneficial debts shall be paid off with the debtor's property at any time. If the debtor's property is insufficient to pay off all bankruptcy expenses and debts, the bankruptcy expenses shall be paid off first. If the debtor's property is insufficient to pay off all bankruptcy expenses or beneficial debts, it shall be paid off in proportion. If the debtor's property is insufficient to pay off the bankruptcy expenses, the administrator shall request the people's court to terminate the bankruptcy proceedings. The people's court shall, within 15 days from the date of receiving the request, make a ruling to terminate the bankruptcy proceedings and make an announcement.
Article 124 After the bankruptcy proceedings are over, the guarantor of the bankrupt and other joint debtors shall continue to be liable for paying off the creditor's rights that have not been paid off according to the bankruptcy liquidation procedures.