The premise of declaring a company bankrupt is that the company is declared bankrupt by the parties concerned when the debt has reached the upper limit and it can not continue to operate. What should the court do if the bankruptcy application is rejected? Then do you know why the bankruptcy application was rejected? Next, please follow the small series of the law map for specific understanding.
I. Reasons for rejecting the bankruptcy application
1, ruling that the bankruptcy application will not be accepted. After receiving the bankruptcy application and relevant evidence materials, the people's court, after formal examination and substantive examination, considers that it does not meet the bankruptcy conditions, and shall make a ruling of rejection according to law. By refusing to accept the bankruptcy application, the people's court can effectively prevent creditors from abusing the bankruptcy application to damage the debtor's business reputation and other legitimate rights and interests, and can also prevent the debtor from evading debts in the name of bankruptcy and damaging the legitimate rights and interests of creditors. According to the provisions of article 12 of the Bankruptcy Law, the ruling of not accepting the bankruptcy application shall be served on the applicant within 5 days from the date of making it, and the reasons for not accepting it shall be explained. If the applicant refuses to accept the ruling, he may appeal to the people's court at the next higher level within 10 days after the ruling is served. If the applicant is ruled inadmissible due to insufficient relevant evidence, he may reapply for bankruptcy after supplementing the evidence.
2. Reject the bankruptcy application after acceptance. Because the substantive examination when accepting a bankruptcy case is a review of superficial facts, there may be cases where the debtor actually has no bankruptcy reasons in practice. Therefore, after accepting the case, the people's court has the opportunity to determine the authenticity of the superficial facts by further examining the evidence and understanding the situation. Paragraph 2 of Article 12 of the Bankruptcy Law stipulates that if the people's court finds that the debtor does not have the bankruptcy reasons specified in Article 2 or Paragraph 2 of Article 7 of the Bankruptcy Law (when the creditor applies) after accepting the bankruptcy application, it may reject the application and terminate the bankruptcy procedure.
Second, the relevant provisions of the bankruptcy law
1. If an enterprise as a legal person is unable to pay off its debts due, 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.
2. 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.
3. If the people's court decides not to accept the bankruptcy application, it shall serve it on the applicant within five days from the date of making the ruling and explain the reasons. If the applicant refuses to accept the ruling, he may appeal to the people's court at the next higher level within 10 days from the date when the ruling is served.
4. After accepting the bankruptcy application, but before declaring bankruptcy, the people's court finds that the debtor does not meet the requirements of Article 2 of this Law, and may rule to reject the application. If the applicant refuses to accept the ruling, he may appeal to the people's court at the next higher level within 10 days from the date when the ruling is served.
According to the relevant laws and regulations, after accepting the bankruptcy application, the court will reject the application if it finds that the bankruptcy application does not meet the relevant circumstances, such as the debtor has not reached the corresponding debts that cannot be paid off, and there are obvious solvency restrictions due to insufficient funds. The above content is a small series of legal charts to answer the question that the bankruptcy application was rejected. I hope it will help you.