Specifically, the conditions for a company to declare bankruptcy mainly include the following aspects.
First of all, the company must be unable to pay off its debts due. This means that the company's liabilities have exceeded its assets, and it is impossible to repay the debts through normal operation or asset disposal. This is a prerequisite for the commencement of bankruptcy proceedings.
Secondly, the company needs to meet the legal requirements for the qualification of bankruptcy applicants. Usually, the bankruptcy application can be filed by the debtor (that is, the company itself) or by the creditor. When the debtor files an application, it needs to provide relevant evidence to prove that it is really unable to pay off its due debts; When making an application, the creditor needs to prove that the debtor is unable to pay off the debts due and his creditor's rights have not been paid off within the statutory time limit.
In addition, the company's bankruptcy declaration also needs to meet the procedural requirements stipulated by law. Including submitting bankruptcy applications and relevant evidence materials to the court, accepting the court's review and ruling, and conducting bankruptcy liquidation or reorganization according to the court's requirements.
To sum up:
The conditions for a company to declare bankruptcy mainly include being unable to pay off its due debts, being qualified as a bankruptcy applicant and meeting the procedural requirements stipulated by law. When the company faces serious financial difficulties, if the above conditions are met, it can choose to seek the opportunity of debt settlement and enterprise restructuring through bankruptcy procedures.
Legal basis:
Enterprise Bankruptcy Law of the People's Republic of China
Article 2 provides that:
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.
Enterprise Bankruptcy Law of the People's Republic of China
Article 7 provides that:
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.
If an enterprise as a legal person has been dissolved but has not been liquidated or its assets are insufficient to pay off its debts, the person liable for liquidation according to law shall apply to the people's court for bankruptcy liquidation.