The five sequences of bankruptcy liquidation are as follows:
1. Pay the liquidation fee;
2. Pay employees' salaries, social security fees and legal compensation;
3. Pay taxes owed by the company;
4. Pay off the company's debts;
5. Distribute the remaining property to shareholders. 1. The conditions for applying for bankruptcy are as follows: 1. Debtors, creditors, members of the bankruptcy liquidation group, etc. apply for bankruptcy liquidation; 2. The debtor is unable to pay off due debts, and its assets are insufficient to pay off all debts or obviously lack solvency; 3. Other conditions stipulated by law exist. Second, the definition of insolvency after bankruptcy is as follows: 1, the debtor loses its solvency; 2. What the debtor can't pay off is the debt that has reached the repayment period, is uncontroversial or has a clear name; 3. Debt is not limited to monetary payment, but it must be a debt that can be evaluated in currency. Otherwise, it is meaningless to declare the debtor bankrupt because its debt form cannot be paid off in the bankruptcy procedure. 4. The debtor is unable to pay off for a long time or in the foreseeable period, rather than temporarily stopping payment due to problems such as cash flow difficulties; 5. The objective property status of the debtor should be determined by the court according to laws and facts, rather than its subjective understanding or expression. In short, after the bankrupt property is paid off, the people's court shall set up a liquidation group to take over the bankrupt enterprise within 15 days from the date of declaring the enterprise bankrupt. After the people's court declares the enterprise bankrupt, the liquidation group takes over the bankrupt enterprise, is responsible for managing, clearing, valuing, disposing and distributing the bankrupt enterprise's property, participates in civil activities on behalf of the bankrupt enterprise, and is responsible for the actions of the people's court and reports its work. At the same time, the liquidation group will propose a distribution plan, which will be discussed and approved by the creditors' meeting. After the report is approved by the people's court, it shall be implemented by the liquidation group. After the liquidation and distribution of bankrupt property is completed, the liquidation group will report the liquidation and distribution to the people's court and apply to the people's court for a ruling to end bankruptcy. Outstanding claims will not be paid off. If an enterprise goes bankrupt and its capacity for civil conduct is terminated according to law, the liquidation group shall apply to the original bankrupt company registration authority for cancellation of the original company registration. Relevant laws and regulations: Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China shall pay off the bankruptcy expenses and beneficial debts in the following order: (1) The wages, medical care, disability allowance and pension expenses owed by the bankrupt to employees shall be included in the basic old-age insurance and basic medical insurance expenses of employees' personal accounts, as well as the compensation that should be paid to employees according to laws and administrative regulations; (2) Social insurance premiums and taxes owed by the bankrupt other than those specified in the preceding paragraph; (3) Ordinary bankruptcy claims. If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion. The wages of directors, supervisors and senior managers of bankrupt enterprises shall be calculated according to the average wages of employees of the enterprise.
The order of compensation and protection of rights and interests in bankruptcy liquidation refers to paying compensation to all kinds of creditors in a certain order and protecting their rights and interests in the process of enterprise bankruptcy liquidation. According to the laws of our country, the compensation order of bankruptcy liquidation usually follows the legal priority order, including workers' wages, social insurance premiums, taxes and so on. These creditors who have priority in repayment enjoy higher rights and interests protection. Other creditors are gradually compensated according to the nature and priority of their claims. Bankruptcy liquidation aims to solve the debt problem of enterprises fairly and reasonably and ensure that the interests of all parties are reasonably protected. Therefore, the setting of compensation order and the implementation of rights protection are of great significance for maintaining social and economic order and protecting the interests of all parties.
Legal basis:
Enterprise Bankruptcy Law of the People's Republic of China;
Chapter VII Creditors' Meeting
Section 1 General Provisions Article 61 The creditors' meeting shall exercise the following functions and powers: (1) Check the creditor's rights; (two) to apply to the people's court to change the administrator, and to review the fees and remuneration of the administrator; (3) Supervisors; (4) Electing and replacing members of the creditors' committee; (5) To decide whether the debtor will continue to operate or stop operating. (6) adopting the reorganization plan. (7) adopting a settlement agreement; (eight) to adopt the management plan of the debtor's property; (9) adopting the bankruptcy property price scheme; (10) adopting the distribution plan of bankruptcy property; (eleven) other functions and powers that the people's court thinks should be exercised by the creditors' meeting. The creditors' meeting shall keep minutes of the resolutions on the matters discussed.