Bankruptcy liquidation system is a system that liquidates, evaluates and disposes of the bankrupt property after the debtor is declared bankrupt, and distributes the bankrupt property according to the prescribed procedures and distribution rules, so that the debtor finally disappears. Bankruptcy liquidation system is often applicable to companies that cannot survive through reorganization or reconciliation.
2. Bankruptcy reorganization
Enterprise reorganization system focuses on actively preventing bankruptcy, fully mobilizing the enthusiasm of all stakeholders, helping to rescue enterprises with operational difficulties, fundamentally restoring the debtor's production and operation ability, maintaining the normal production and operation order of enterprises, and realizing the regeneration and reconstruction of enterprise value. In nature, the reorganization system has the dual purpose of debt clearing and enterprise rescue, and the latter is the main aspect.
3. Bankruptcy protection
Bankruptcy protection means that no matter whether the debtor is solvent or not, when the debtor voluntarily applies to the court for bankruptcy reorganization or the creditor forces him to apply to the court for bankruptcy reorganization, the debtor will put forward a bankruptcy reorganization plan, and make arrangements for the time limit and method of debt repayment and the interests that may harm some creditors and shareholders.
This plan should be put forward in a certain period of time, and the debtor can continue to operate after it is approved by the creditors and confirmed by the court. This is the concept of reorganization, which is also called bankruptcy protection in Chinese.
Extended data
The role in bankruptcy reorganization
1. The role of bankruptcy protection: Once the enterprise is in crisis and the debtor judges that it may be dragged down by creditors, he will take the initiative to apply to the court for bankruptcy protection. Once the bankruptcy procedure is initiated, all the measures of sealing up, distraining and freezing of the debtor are immediately lifted, and the relevant enforcement measures must be terminated.
2. Discard and exclude the function of irrational choice: Because bankruptcy reorganization is a negotiation under judicial guarantee, it has its operating rules and methods, its grouping and voting standards, which avoids the parties being too arrogant and obtaining improper benefits, so it is a mandatory guarantee for rational negotiation.
3. Encourage debtors to start their own businesses during the reorganization period: If an enterprise enters bankruptcy proceedings in the case of insolvency, its original senior management ability will be greatly limited, and most of the management affairs will be handled by managers outside the case, so as to encourage debtors to start their own businesses under the supervision of the managers.
4. There are various ways of reorganization: mainly survival type and sale type, which are more flexible.
5. Have the right to terminate or continue to perform the relevant contract: that is, the manager has certain right to choose to perform. If the continued performance of the contract is still valuable for saving the enterprise, the contract should be continued.
6. Stop calculating interest: Once the bankruptcy application is accepted, the creditor's interest and default interest on the debtor will stop calculating.
7. Suspension of the exercise of the secured creditor's rights: If the enterprise enters bankruptcy proceedings, the exercise of the guarantee obligation agreed in the original contract will also be restricted.
8. Centralized jurisdiction: However, if the court accepts the debtor's bankruptcy application, its civil actions can only be centralized, and all civil actions against the bankrupt debtor can only be brought to the people's court that accepts the bankruptcy case.
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