Legal analysis: Bankruptcy liquidation means that after the company is declared bankrupt, the liquidation team takes over the company and liquidates, evaluates, disposes and distributes the bankrupt property. The liquidation procedure is as follows: 1. Establish a liquidation team. If the company is dissolved due to legal reasons, it shall set up a liquidation group within 15 days from the date when the reasons for dissolution appear and start liquidation. The liquidation group of a limited liability company is composed of shareholders, and the liquidation group of a joint stock limited company is composed of directors or personnel determined by the shareholders' meeting. 2. The liquidation group takes over the company. Third, the company's property distribution. After clearing up the company's property, preparing the balance sheet and property list, the liquidation group shall formulate the liquidation plan and report it to the shareholders' meeting, shareholders' meeting or the people's court for confirmation. 4. After liquidation, the company is cancelled. After the liquidation of the company, the liquidation group shall prepare a liquidation report, submit it to the shareholders' meeting, the shareholders' meeting or the people's court for confirmation, and submit it to the company registration authority to apply for cancellation of company registration and announce the termination of the company.
Legal basis: Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China. 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. 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.