Conditions for declaring bankruptcy of a limited company

Legal analysis: (1) The debtor is obviously insolvent and cannot pay off the debt by any means such as property, credit and ability; (2) What the debtor can't pay off is the debt that the creditor demands to pay off after the time limit has expired; (3) The debtor is unable to pay off all or major debts in a continuous state.

Legal basis: 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.

People's Republic of China (PRC) Civil Procedure Law

Article 199 Where an enterprise as a legal person is unable to pay off its debts due to serious losses, the creditor may apply to the people's court for declaring the debtor bankrupt and paying off, and the debtor may also apply to the people's court for declaring bankruptcy and paying off.