Bankruptcy means that when all the debtor's assets can't pay off the debts due, the creditor will compensate all the debtor's assets in equal amount through certain legal procedures, so that the debtor can be exempted from other debts that can't be paid off. Bankruptcy refers to a kind of enterprise behavior and economic behavior in most cases. However, people are sometimes used to saying that individuals or companies stop operating, which is also called bankruptcy.
1. Bankruptcy in the economic sense refers to a special economic state of the debtor. In this state, the debtor has been unable to pay the debts due, and finally has to repay all the debts. Bankruptcy in the legal sense means that the creditor-debtor relationship between debtors and many creditors is generally solved by a legal means and procedure.
2. Generally speaking, bankruptcy refers to the debtor's inability to pay off debts, also known as de facto bankruptcy, which is mainly divided into two categories: one is that the debtor has lost the property bearing capacity of continuing to operate the enterprise; The other category refers to the financial crisis in which the debtor is unable to pay off his debts. However, the "bankruptcy" used in law refers to the debt repayment procedure applicable when the debtor is unable to pay off the debt and the legal state in which the debtor's position is restricted after the end of this procedure.
3. When the debtor is unable to pay off the due debts, all the debtor's property shall be paid off fairly to all creditors.
4. Bankruptcy is the reason for starting bankruptcy proceedings. The inability to pay or the debt exceeds all indicates that the debtor can't pay off the debt, so liquidation treatment such as bankruptcy is carried out.
5. When the debtor fails to pay, the court declares bankruptcy according to the application ruling; When the debtor stops paying, it is presumed that it cannot pay.