1. A limited company entering bankruptcy proceedings shall issue a public announcement declaring bankruptcy;
2. Creditors shall declare their claims within the prescribed time limit after learning that the company is bankrupt. If the declaration is not made in time, a supplementary declaration can be made before the property distribution;
3. After the limited company pays off the bankruptcy expenses and * * * beneficial debts, it shall pay off the debts in accordance with the legal order according to the claims declared by the creditors.
Bankruptcy expenses and beneficial debts shall be paid off with the debtor's property at any time. If the debtor's property is insufficient to pay off all bankruptcy expenses and debts, the bankruptcy expenses shall be paid off first. If the debtor's property is insufficient to pay off all bankruptcy expenses or beneficial debts, it shall be paid off in proportion. If the debtor's property is insufficient to pay off the bankruptcy expenses, the administrator shall request the people's court to terminate the bankruptcy proceedings. The people's court shall, within 15 days from the date of receiving the request, make a ruling to terminate the bankruptcy proceedings and make an announcement.
Legal basis: Article 187 of the Company Law of People's Republic of China (PRC).
After clearing up the company's assets, compiling the balance sheet and list of assets, the liquidation group finds that the company's assets are insufficient to pay off debts, and shall apply to the people's court for bankruptcy according to law.
After the company is declared bankrupt by the people's court, the liquidation group shall hand over the liquidation affairs to the people's court.
Article 188
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.