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.
Article 7 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.
Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Enterprise Bankruptcy Law of the People's Republic of China (I)
Article 1 If the debtor is unable to pay off the debts due and has any of the following circumstances, the people's court shall determine that he has bankruptcy reasons:
(1) The assets are insufficient to pay off all debts;
(2) the obvious lack of solvency.
The people's court will not support the claim that the debtor has no bankruptcy reasons on the grounds that the person who is jointly and severally liable for the debtor's debts has not lost his solvency.
Article 2 If the following circumstances exist at the same time, the people's court shall determine that the debtor cannot pay off the debts due:
(a) the relationship between creditor's rights and debts is established according to law;
(2) The debt performance period has expired;
(3) The debtor has not fully paid off his debts.