The definition of a company on the verge of bankruptcy is mainly whether it can be divided into the following two hidden sources: the first category: the assets of an enterprise as a legal person can pay off all debts, but the company can no longer operate due to various reasons such as operation, and the company can be dissolved by a resolution of the shareholders' meeting. Category II: 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, the debts shall be cleared according to law. For the second category, the debtor or creditor may apply to the people's court for bankruptcy or reorganization, and the debtor may also apply to the people's court for reconciliation. According to the law, if the company declares bankruptcy, it should continue to pay off the following debts: wages, medical care, disability allowance and pension expenses owed by the bankrupt, basic pension insurance and basic medical insurance expenses that should be written off and credited to employees' personal accounts, and other compensations that should be paid to employees according to laws and administrative regulations.