What Is Bankruptcy?

Bankruptcy refers to a legal system in which the debtor or the debtor applies to the court to declare bankruptcy and repay the debt in accordance with the bankruptcy procedure when the debtor cannot pay the debt or becomes insolvent. The narrow bankruptcy system refers only to the bankruptcy liquidation system, and the broader bankruptcy system also includes the system of reorganization and reconciliation. In most cases, bankruptcy refers to a corporate or economic act. And sometimes people are used to calling individuals or companies to cease business also called bankruptcy.

[pò chn]

Bankruptcy means

(1) Debtor cannot pay off due debts

"Due debts" refers to debts that have reached the deadline for fulfilling their debt repayment obligations; "payment" refers to full repayment; "unpayable" refers to the various possibilities of not being paid on time. A debtor's insolvency cannot of course be regarded as "unsolvable".

(2) Existing majority creditors

If there is only one creditor, only general civil enforcement procedures are required. When there are a majority of creditors, if general civil enforcement procedures are adopted, due to the competing claims of creditors to enforce the debtor's property, some creditors may not be repaid or only a small amount of repayment may be caused, resulting in a significantly unfair result. Special procedures-bankruptcy procedures to ensure fairness of the profit and loss of each creditor.

(3) Creditors' fair compensation

The debtor's entire property is not enough to pay off the entire debt, which determines that the creditor cannot realize the entire debt. According to the requirements of "homogeneous claims and equal status", the debtor's property must be distributed among the creditors in accordance with the legal order and in the same proportion to ensure fairness among creditors.

(4) Forgive debts that have not been paid off

(1) After the company applying for bankruptcy and creditors reach a settlement agreement, the superior authority of the company applying for bankruptcy is responsible for presiding over the rectification of the company. The rectification period shall not exceed 2 years. If the company is able to settle its debts after the expiry of the rectification period, the court may terminate the bankruptcy proceedings.

(2) The company law provides that

Bankruptcy is

In real life, many companies often use some means to manipulate certain indicators in order to whiten their financial situation, so that they have better external performance. But due to

Chapter I General Provisions

Chapter II Application and Acceptance

Section 1 Application

Section 2 Acceptance

Chapter III Managers

Chapter IV Debtor's Property

Chapter V Bankruptcy Expenses and Mutual Benefit Debt

Chapter VI Declaration of Claims

Chapter VII Creditors' Meeting

Section I General Provisions

Section 2 Creditors Committee

Chapter VIII Reorganization

Section 1 Reorganization Application and Reorganization Period

Section 2 Formulation and Approval of Reorganization Plan

Section 3 Implementation of Reorganization Plan

Chapter IX Reconciliation

Chapter X Bankruptcy Liquidation

Section 1 Bankruptcy Declaration

Section II Price Change and Distribution

Section III End of Bankruptcy Proceedings

Chapter XI Legal Liability

Chapter XII Supplementary Provisions

Provisions of the Supreme People's Court on Several Issues concerning the Application of the Enterprise Bankruptcy Law of the People's Republic of China

(Adopted at the 1586th meeting of the Judicial Committee of the Supreme People's Court on July 29, 2013)

In accordance with relevant laws such as the Bankruptcy Law of the People s Republic of China, the Real Estate Law of the People s Republic of China, the Contract Law of the People s Republic of China and other relevant laws, in combination with trial practice, the People s Court has tried to determine the application of laws related to the identification of the debtor s property in an enterprise bankruptcy case. .

Article 1 Except for the currency and physical property owned by the debtor, the debtor's rights, such as creditor's rights, stock rights, intellectual property rights, and usufructuary property and property rights that can be valued in currency and can be transferred in accordance with the law in accordance with the law, shall be recognized as the debtor's property.

Article 2 The following property shall not be identified as the debtor's property:

(1) the debtor's property owned or used by the debtor based on a contract such as warehousing, custody, contracting, consignment, borrowing, custody, or lease or other legal relationship;

(2) The property that the debtor has not acquired ownership in the sale and purchase of ownership;

(3) Property that is exclusively owned by the state and is not transferable;

(4) Other property that does not belong to the debtor in accordance with laws and administrative regulations.

Article 3 The specific property of the debtor that has been set up by the debtor in accordance with law shall be determined by the people's court as the property of the debtor.

The remaining part of the debtor's specific property after the security interest is eliminated or the security right is realized can be used in the bankruptcy proceedings to settle bankruptcy costs, mutual benefit debts and other bankruptcy claims.

Article 4 The people's court shall recognize the debtor's property as the debtor's relevant share of the joint property that enjoys ownership by ownership, or the corresponding property rights of the common property that enjoys ownership together, and the portion of the common property that is divided according to law.

The people's court declared that the debtor was bankrupted and liquidated, which is a legal reason for the division of common property. If the people's court decides that the debtor should be reorganized or reconciled, the division of the joint property shall be carried out in accordance with the provisions of Article 99 of the Real Right Law; if the common property must be divided based on the need for reorganization or reconciliation, and the administrator requests the division, the people's court shall grant permission.

The people's court shall support the debts arising from the damage to other co-owners due to the division of the common property and the other co-owners request settlement as mutual benefit debts.

Article 5 After the application for bankruptcy is accepted, if the execution procedures of the debtor's property have not been suspended in accordance with the provisions of Article 19 of the Enterprise Bankruptcy Law, the relevant units taking enforcement measures shall correct them in accordance with law. The people's court shall recognize the property as the debtor's property in accordance with the law.

Article 6 After the application for bankruptcy is accepted, the people's court that accepts the application for bankruptcy may, in accordance with the application of the administrator or ex officio, conduct all or part of the debtor on the bankruptcy proceedings that may be affected by the actions of relevant stakeholders or other reasons. Property preservation measures are taken.

Article 7 Relevant units that have taken measures to preserve the debtor's property shall, upon learning that the people's court has ruled to accept the bankruptcy application of the relevant debtor, promptly lift the measures to preserve the debtor's property in accordance with Article 19 of the Enterprise Bankruptcy Law.

Article 8: After the people's court accepts an application for bankruptcy and decides to reject the application for bankruptcy before the declaration of bankruptcy, or if the bankruptcy proceedings are terminated in accordance with the provisions of Article 108 of the Enterprise Bankruptcy Law, it shall promptly notify the original preservation measures have been taken and the preservation has been cancelled The unit that took the measures resumed the relevant preservation measures in accordance with the original preservation order.

The people's court that accepts an application for bankruptcy shall not release the security measures against the debtor's property until the unit that has cancelled the security in accordance with the law resumes or indicates that it will not resume.

Article 9 Where the administrator files a lawsuit in accordance with the provisions of Articles 31 and 32 of the Enterprise Bankruptcy Law, requesting the revocation of a related act involving the debtor's property and the return of the debtor's property by a counterparty, the people's court shall support it.

If the administrator fails to exercise the right of rescission due to his fault and the debtor's property is improperly depreciated, and the creditor institutes a lawsuit to assert that the administrator assumes corresponding compensation for his losses, the people's court shall support it.

Article 10 If the debtor is transferred to bankruptcy proceedings after administrative liquidation procedures, the starting point of the revocable behavior specified in Articles 31 and 32 of the Enterprise Bankruptcy Law shall be the date on which the administrative supervisory authority makes a decision to cancel.

If the debtor is transferred to bankruptcy proceedings after the compulsory liquidation procedure, the starting point of the revocable behavior specified in Articles 31 and 32 of the Enterprise Bankruptcy Law shall be the date when the people's court decides to accept the application for compulsory liquidation.

Article 11 Where a people's court cancels a transaction involving a debtor's property at a significantly unreasonable price at the request of the administrator, the buyer and the seller shall return the property or the price obtained from the other party in accordance with the law.

As a result of the cancellation of the transaction, the people's court shall support the debtor's debt arising from the price paid by the transferee and the transferee's request for settlement as a mutual benefit debt.

Article 12 The unpaid debts settled by the debtor in advance within one year before the acceptance of the bankruptcy application have already expired before the acceptance of the bankruptcy application, and the people's court shall not support it if the administrator requests the cancellation of the settlement. However, except that the settlement occurs within six months before the acceptance of the bankruptcy application and the debtor has the circumstances specified in Article 2 (1) of the Enterprise Bankruptcy Law.

Article 13 After the application for bankruptcy is accepted, the manager fails to request the cancellation of the debtor's free transfer of property, transactions at a significantly unreasonable price, or abandonment of creditor's rights in accordance with the provisions of Article 31 of the Enterprise Bankruptcy Law. Articles and other provisions file a lawsuit requesting the debtor to revoke the above-mentioned behavior of the debtor and attribute the recovered property to the debtor's property, and the people's court shall accept it.

If the counterparty uses the creditor to exercise the scope of the right of revocation beyond the defense of the creditor's claim, the people's court will not support it.

Article 14 The people's court shall not support the debtor's individual settlement of the creditor's right to establish a security right in his own property in accordance with Article 32 of the Enterprise Bankruptcy Law. However, except when the value of the secured property is lower than the amount of the debt at the time of debt settlement.

Article 15 The people's court shall not support the debtor's individual settlement of creditors after litigation, arbitration, and enforcement procedures, and the administrator requests cancellation in accordance with Article 32 of the Enterprise Bankruptcy Law. However, the exception is that a malicious collusion between the debtor and the creditor harms the interests of other creditors.

Article 16 The people's court shall not support the following individual settlements made by the debtor to the creditor and the administrator requesting cancellation in accordance with Article 32 of the Enterprise Bankruptcy Law:

(1) The debtor pays water and electricity charges to maintain basic production needs;

(2) The debtor pays labor compensation and personal injury compensation;

(3) other individual settlements that benefit the debtor's property.

Article 17 The administrator filed a lawsuit in accordance with the provisions of Article 33 of the Enterprise Bankruptcy Law, claiming that the actual owner of the concealed or transferred property returned the debtor's property, or that the debtor's fictional debt or the recognition of untrue debt was invalid and returned to the debtor For property, the people's court shall support it.

Article 18 On behalf of the debtor, the manager shall, in accordance with the provisions of Article 128 of the Bankruptcy Law of the Enterprise, use the legal representative of the debtor and other persons directly responsible for the relevant acts of the debtor's property to cause intentional or gross negligence, resulting in the debtor's property If a lawsuit is filed on the grounds of loss, the people's court shall support it if the aforesaid responsible person assumes corresponding liability for compensation.

Article 19 The statute of limitations of the debtor's enjoyment of external creditor's rights shall be suspended from the date when the people's court accepts an application for bankruptcy.

If the debtor fails to exercise his rights in time for his due claims without justified reasons, causing his external claims to exceed the statute of limitations within one year before the bankruptcy application is accepted, the people's court shall recalculate the statute of limitations of the above-mentioned creditors from the date when the bankruptcy application is accepted.

Article 20 The manager has filed a lawsuit on behalf of the debtor, arguing that the investor shall pay the debtor the unfulfilled capital contribution or return the evacuated capital interest in accordance with the law. The people's court will not support the defense beyond the time limit for litigation.

The manager filed a lawsuit on behalf of the debtor in accordance with the relevant provisions of the Company Law, arguing that the company's promoters and directors, senior managers who are responsible for supervising shareholders to perform their capital contribution obligations, or other shareholders, directors, senior managers, and actual controllers who assist in withdrawing capital contributions The people's court shall support the shareholders who bear corresponding responsibilities for breach of the capital contribution obligation or withdrawal of capital contribution and attribute the property to the debtor's property.

Article 21 Prior to the acceptance of an application for bankruptcy, the creditor has filed the following lawsuit against the debtor's property. If the case has not yet been concluded when the application for bankruptcy is accepted, the people's court shall suspend the trial:

(1) claiming that the sub-debtor will pay the debt directly to the debtor instead of the debtor;

(2) The debtor's investors, promoters and directors, senior managers who are responsible for supervising shareholders to fulfill their capital contribution obligations, or other shareholders, directors, senior managers, actual controllers who assist in withdrawing capital contributions directly to them The actual or withdrawal of the responsibility for capital contribution;

(3) on the grounds that the debtor's shareholders and the debtor's legal personality are seriously confused, claiming that the debtor's shareholders directly repay the debts to the debtor;

(4) Other individual settlement proceedings on the debtor's property.

After the debtor's bankruptcy is declared, the people's court shall dismiss the creditor's lawsuit in accordance with the provisions of Article 44 of the Enterprise Bankruptcy Law. However, except in the first instance, the creditor changed his claim to the relevant property recovered as the debtor's property.

Before the debtor declares bankruptcy, if the people's court decides to reject the bankruptcy application or terminate the bankruptcy procedure in accordance with Article 12 or Article 108 of the Enterprise Bankruptcy Law, the above-mentioned suspended trial cases shall be resumed in accordance with law.

Article 22 Prior to the acceptance of a bankruptcy application, the creditor shall file a lawsuit set forth in Article 21, paragraph 1, of these rules with the people's court over the debtor's property. If the people's court has made a valid civil judgment or mediation but has not completed the execution, the bankruptcy application After acceptance, the relevant enforcement action shall be suspended in accordance with the provisions of Article 19 of the Enterprise Bankruptcy Law, and the creditor shall declare the relevant creditor's rights to the manager in accordance with the law.

Article 23 After the bankruptcy application is accepted, the creditor shall not accept the lawsuit set forth in Article 21, Paragraph 1 of these Provisions with respect to the debtor's property.

The creditor, through the creditor's meeting or the creditor's committee, requires the manager to recover the debtor's property from the sub-debtor and the debtor's investor, etc. according to law. The manager refuses to recover the debtor without justified reasons. The creditor's meeting applies in accordance with Article 22 of the Enterprise Bankruptcy Law. If the people's court changes the administrator, the people's court shall support it.

If the manager refuses to recover, and individual creditors file related lawsuits on behalf of all creditors, claiming that the sub-debtor or the debtor's investor, etc., should pay or return the debtor's property to the debtor, or apply for merger and bankruptcy according to law, the people's court shall accept it.

Article 24 When the debtor has the circumstances stipulated in Article 2 (1) of the Enterprise Bankruptcy Law, the debtor's directors, supervisors, and senior management personnel shall use the following income obtained by their powers to be recognized by the people's court as Article 36 of the Enterprise Bankruptcy Law Required abnormal income:

(1) Performance bonus;

(2) Wage income obtained in the case of wage arrears;

(3) Other abnormal income.

If the director, supervisor and senior management of the debtor refuses to return the debtor's property to the manager, and the manager advocates the return of the aforementioned person, the people's court shall support it.

The debtor's directors, supervisors and senior management personnel's claims arising from the return of the abnormal income of items (1) and (3) of the first paragraph can be settled as ordinary bankruptcy claims. Claims for the return of abnormal income in item (2) of the first paragraph shall be settled in accordance with the provisions of Article 113, Paragraph 3 of the Enterprise Bankruptcy Law, based on the average salary of the employees of the enterprise as the payment of arrears of employees' salaries; high The part calculated by the average salary of employees of the enterprise can be used as the settlement of ordinary bankruptcy claims.

Article 25 The manager intends to repay the debts or liens by paying off the debts or providing guarantees, or by negotiating with the pledgee and the lien to pay off the debts at a discount of the pledges or liens, etc., which has a significant effect on the interests of creditors. Any affected property disposal shall be reported to the creditors committee in a timely manner. If no creditor committee has been established, the manager shall report to the people's court in a timely manner.

Article 26 The right holder, in exercising the right of recovery in accordance with the provisions of Article 38 of the Bankruptcy Law of the Enterprise, shall submit the proposal for the bankruptcy property to the creditors' meeting and vote before the draft of the settlement plan or settlement agreement or reorganization plan for the bankruptcy property. If the obligee claims to retrieve the relevant property after the above period, it shall bear the relevant expenses for the delay in exercising the right to retrieve.

Article 27 The right holder claims the relevant property to be retrieved from the administrator in accordance with the provisions of Article 38 of the Enterprise Bankruptcy Law. The administrator does not recognize the right, and the right holder uses the debtor as the defendant to bring a lawsuit to the people's court to exercise the right of retrieval. , The people's court shall accept it.

If the right holder claims from the people's court or the arbitration organ to take over the disputed property from the administrator, and the administrator refuses to exercise the right of recovery on the grounds that the effective legal document is wrong, the people's court will not support it.

Article 28. When the obligee fails to pay the manager the relevant processing fee, storage fee, consignment fee, commission fee, consignment fee and other expenses in accordance with the law when the right holder exercises the right of retrieval, the people's court shall grant the manager's refusal to retrieve the relevant property. stand by.

Article 29 For the property that is not easy to keep, such as live perishable property with unclear ownership, or property that will be seriously devalued if it is not realised in time, the manager changes the price in time and deposits the price. The people's court shall support the exercise of the right to recover the price.

Article 30 The property of another person in possession of the debtor is illegally transferred to a third party. According to the provisions of Article 106 of the Property Law, the third party has acquired the property ownership in good faith. If the original owner cannot retrieve the property, the people's court shall The following provisions deal with:

(1) Where the transfer occurs before the bankruptcy application is accepted, the creditor's rights formed by the original right holder due to property losses shall be settled as ordinary bankruptcy claims;

(2) Where the transfer occurs after the acceptance of the bankruptcy application, the debt resulting from the damage of the original right holder due to the performance of the duties of the manager or related personnel shall be settled as a mutual benefit debt.

Article 31 The property of another person in the possession of the debtor is illegally transferred to a third party. The third party has paid the debtor the transfer price, but according to the provisions of Article 106 of the Property Law, the original owner has not obtained ownership of the property. For the transfer of property, the people's court shall handle the debts arising from the consideration paid by a third party in accordance with the following provisions:

(1) Where the transfer occurs before the bankruptcy application is accepted, it shall be settled as ordinary bankruptcy claims;

(2) Where the transfer occurs after the bankruptcy application is accepted, it shall be settled as a mutual benefit debt.

Article 32 Where the property of another person in the possession of the debtor is damaged or lost, and therefore the insurance, compensation, or reimbursement obtained has not yet been delivered to the debtor, or although the reimbursement has been delivered to the debtor but can be distinguished from the debtor's property, the right People's courts should support the claims of insurance, compensation, and reimbursement obtained in this regard.

Where the insurance or compensation has been delivered to the debtor, or the compensation has been delivered to the debtor and cannot be distinguished from the debtor's property, the people's court shall deal with it in accordance with the following provisions:

(1) If the damage or loss of property occurs before the bankruptcy application is accepted, the creditor's right formed by the property owner due to the loss of property shall be settled as an ordinary bankruptcy claim;

(2) If the destruction or loss of property occurs after the bankruptcy application is accepted, the debts resulting from the damage of the right holder due to the performance of the duties of the manager or related personnel shall be settled as mutual benefit debts.

The debtor's possession of someone else s property is damaged or lost without corresponding insurance, compensation, or compensation, or the insurance, compensation, or compensation is not sufficient to make up for his loss. Provision of treatment.

Article 33 In the course of performing his duties, the manager or related personnel may, due to intentional or gross negligence, improperly transfer the property of another person or cause damage to or loss of the property of another person, resulting in damage to another person s debt as a mutual benefit debt. Where the right holder claims to the manager or related personnel for additional compensation, the people's court shall support it.

After the above debts are settled by the debtor's property at any time as a mutual benefit debt, the creditor institutes a lawsuit on the grounds that the improper performance of the manager or related personnel causes the debtor's property to decrease and cause losses to the debtor. Give support.

Article 34 The parties to a sales contract agree that the ownership of the subject matter is retained in the contract. If one of the parties becomes bankrupt before the ownership of the subject matter is transferred to the buyer in accordance with the law, the sales contract is a contract that has not been performed by both parties. The right to decide to terminate or continue to perform the contract according to the provisions of Article 18 of the Enterprise Bankruptcy Law.

Article 35 If the seller goes bankrupt and its manager decides to continue to perform the contract for the retention of ownership, the buyer shall pay the price or perform other obligations in accordance with the original sales contract.

If the buyer fails to pay the price according to the contract or fulfills other obligations, or sells, pledges, or makes other improper sanctions on the subject matter, causing damage to the seller, and the seller's manager claims to retrieve the subject matter according to law, the people's court shall grant stand by. However, except that the buyer has paid more than 75% of the total price of the subject matter, or the third party has obtained the subject matter's ownership or other property rights in good faith.

If the seller fails to retrieve the subject matter as specified in the second paragraph of this article, if the seller's manager claims that the buyer shall continue to pay the price, perform other obligations, and assume corresponding liability, the people's court shall support it.

Article 36 If the seller is bankrupt, and its manager decides to terminate the retention-of-sale contract, and requires the buyer to deliver the subject matter to it in accordance with Article 17 of the Enterprise Bankruptcy Law, the people's court shall support it.

The people's court shall not support the buyer if he fails to pay the price in accordance with the contract or fulfill other obligations, or if he sells, pledges, or makes other improper sanctions against the subject matter.

After the buyer fulfills its contractual obligations in accordance with the law and delivers the subject matter of the sale to the seller's manager in accordance with paragraph 1 of this article, the creditor's right formed by the buyer's loss of the paid price is settled as a mutual benefit debt. However, if the buyer violates the contract and the seller's manager claims that the above claims are settled as ordinary bankruptcy claims, the people's court shall support them.

Article 37 If the buyer is bankrupt, and its manager decides to continue to perform the retention-of-sale contract, the time limit for the buyer to pay the price or perform other obligations stipulated in the original sales contract shall be deemed to have expired when the bankruptcy application is accepted. The trustee shall pay the seller or perform other obligations in a timely manner.

The buyer's manager fails to pay the price in a timely manner or fulfills other obligations without justified reasons, or sells, pledges, or makes other improper sanctions on the subject matter, and causes damage to the seller. The seller is in accordance with Article 134 of the Contract Law. The People's Court shall support those who claim to retrieve the subject matter. However, except that the buyer has paid more than 75% of the total price of the subject matter, or the third party has obtained the ownership of the subject matter or other property rights in good faith.

If the seller fails to retrieve the subject matter as provided in the second paragraph of this article, if the seller claims that the buyer shall continue to pay the price, perform other obligations, and assume corresponding liability, the people's court shall support it. For the debts caused by the seller's damage caused by the buyer's failure to pay the price or other obligations not fulfilled, and the seller's manager selling, pawning, or making other improper sanctions, the seller claims to be settled as a mutual benefit debt, The people's court should support it.

Article 38 If the buyer is bankrupt, and its manager decides to terminate the retention-of-sale contract, the people's court shall support the seller's claim for the sale of the subject matter in accordance with Article 38 of the Enterprise Bankruptcy Law.

The people's court shall support the seller's recovery of the subject matter of the purchase and the buyer's manager advocates the seller to return the paid price. If the value of the retrieved object is significantly reduced and the seller is caused to lose, the seller may deduct it from the price paid by the buyer and return the remainder to the buyer; the price paid by the buyer is not enough The people's court shall support the creditor's right formed by deducting the loss of the value of the seller's underlying property from the seller's claim as a mutual benefit debt.

Article 39 In accordance with the provisions of Article 39 of the Enterprise Bankruptcy Law, the seller shall notify the carrier or the actual possessor to suspend transportation, return the goods, change the place of arrival, or deliver the goods to other consignees. The bidding object claimed the right of retrieval but was not realized, or the goods were claimed to be retrieved from the administrator before the goods reached the administrator, and the seller claimed to the administrator after the sale and purchase of the object reached the administrator. If retrieved, the administrator shall grant permission.

If the seller fails to exercise the right to retrieve the bid in transit, the manager shall not permit the buyer to exercise the right to retrieve the bid in transit after the purchase or sale of the bid has reached the administrator.

Article 40 During the debtor's reorganization period, the people's court will not support the obligor's request for the recovery of the obligee's property legally owned by the obligor, which does not meet the conditions agreed in advance by the two parties. However, the violation of the agreement by the administrator or the debtor managed by itself may cause the retrieved property to be transferred, damaged, lost or significantly reduced in value.

Article 41 In exercising the right of set-off in accordance with the provisions of Article 40 of the Enterprise Bankruptcy Law, a creditor shall submit a set-off claim to the manager.

The manager shall not take the initiative to offset the mutual debts of the debtor and the creditor, except that the offset will benefit the debtor's property.

Article 42 After receiving the notice from the creditor claiming the offset of the debt, if the review has no objection after review, the offset will take effect as of the day the administrator receives the notice.

If the manager has any objection to the offset claim, he shall file a lawsuit in the people's court within the agreed period of objection or within three months from the date of receiving the notice claiming the offset of the debt. The people's court will not support it if it is filed within the time limit without justified reasons.

If the people's court decides to reject the claim for invalidation of the invalidation filed by the administrator, the offset will take effect as of the day when the administrator receives the notice claiming the offsetting of the debt.

Article 43 Where the creditor advocates offsetting and the manager raises an objection for the following reasons, the people's court shall not support it:

(1) when the bankruptcy application is accepted, the debt of the debtor to the creditor has not yet expired;

(2) when the bankruptcy application is accepted, the debts of the creditor to the debtor have not yet expired;

(3) The types and qualities of the objects of mutual debts of the two parties are different.

Article 44 Within six months before the acceptance of the bankruptcy application, the debtor has the situation stipulated in Article 2 (1) of the Enterprise Bankruptcy Law. The debtor and individual creditors settle the individual creditors by offsetting, and the offsetting creditor's rights and debts belong to the enterprise. In one of the cases stipulated in Article 40 (2) and (3) of the Bankruptcy Law, the administrator filed a lawsuit in a people's court within three months from the date of acceptance of the bankruptcy application, claiming that the offset was invalid, and the people's court should grant stand by.

Article 45 Creditors who cannot be set off under Article 40 of the Enterprise Bankruptcy Law claim that their creditor's right of priority to the debtor's specific property shall be set off against the debtor's right to no priority of compensation. If the debtor's administrator raises an objection against the situation stipulated in Article 40 of the Enterprise Bankruptcy Law, the people's court will not support it. However, the exception is that the creditor's right to offset is greater than the value of the property of which the creditor has priority.

Article 46 If the debtor's shareholders advocate the following debts to be offset by the debtor's debts, and the debtor's manager raises an objection, the people's court shall support:

(1) debts of the debtor's shareholders due to the debtor's debts due to the debtor's debts;

(2) The debtor's shareholder abuses the shareholder's rights or the connected relationship harms the company's debt to the debtor.

Article 47 After the people's court accepts an application for bankruptcy, the civil lawsuit filed by the parties concerning the debtor shall be under the jurisdiction of the people's court that accepts the application for bankruptcy in accordance with Article 21 of the Enterprise Bankruptcy Law.

A civil case of the first instance involving a debtor under the jurisdiction of the people's court that accepts an application for bankruptcy may be submitted for trial by a higher people's court in accordance with the provisions of Article 38 of the Civil Procedure Law, or submitted to a lower people's court for approval after approval by a higher people's court.

If the people's court that accepts an application for bankruptcy cannot exercise jurisdiction over maritime disputes, patent disputes, and civil compensation disputes caused by false statements in the securities market, it may be based on the provisions of Article 37 of the Civil Procedure Law. The superior people's court has designated jurisdiction.

Article 48. The judicial interpretations concerning the bankruptcy of enterprises promulgated by this court before the implementation of these Provisions, which are inconsistent with these Provisions, shall no longer apply as of the date of implementation of these Provisions.