The legal effect of the bankruptcy case after the acceptance of the bankruptcy case

Handling method: After the court accepts the bankruptcy application, the trial of the lawsuit that has begun but has not been concluded shall be suspended, and the litigation of the case shall be resumed only after the administrator Songji takes over the property.

Legal analysis1. After the court accepts the bankruptcy application, it will organize a liquidation team to liquidate the company's assets and liabilities. 2. Under normal circumstances, the company should stop business activities unrelated to liquidation. 3. No early repayment shall be made to any creditor.

4. All cases in which the bankrupt company is the defendant are suspended from litigation activities, and the execution of judgments that have entered the enforcement stage is also temporarily suspended. 5. All the bankruptcy property seized by the court shall be unsealed and counted by the liquidation team organized by the court. The debtor's ability to repay is only limited to the actual assets, and the possible repayment factors such as credit and ability are not considered.

When the debtor is unable to pay off the debts due, it is usually insolvent, but when the debtor's book assets still exceed the liabilities, it may also be unable to pay due to poor management, unreasonable capital structure, and the lack of actual ability to pay the debts due, which is also a kind of obvious lack of solvency.

Legal basisEnterprise Bankruptcy Law of the People's Republic of China Article 107 Where a people's court declares a debtor bankrupt in accordance with the provisions of this Law, it shall deliver it to the debtor and the administrator within 5 days from the date of making the ruling, and notify the known creditors within 10 days from the date of the ruling, and make a public announcement. After the debtor is declared bankrupt, the debtor is called the bankrupt, the debtor's property is called the bankruptcy estate, and the creditor's rights enjoyed by the people's court against the debtor when accepting the bankruptcy application are called bankruptcy claims.

Adjournment of the hearing. The trial of the lawsuit that has begun but has not been concluded shall be suspended, and the lawsuit or arbitration shall continue after the administrator takes over the debtor's property. After the people's court accepts the bankruptcy application, the debtor's civil lawsuit can only be filed with the people's court that accepts the bankruptcy application.

1. How much time does it take for bankruptcy liquidation?

1) There is no specific time for this, and it will generally be very long, and a few years is common. The bankruptcy law only specifies the time when the court can accept the bankruptcy application. The time for the bankruptcy liquidation of fast-losing enterprises is not stipulated in the law, not because the law omits it, but because the bankruptcy situation of enterprises is very complicated, and some bankruptcies may not be able to be liquidated within a year, let alone how many working days can be completed.

2) Because bankruptcy may be reorganized, reorganization means continuing to operate, and it is difficult to say at this time. And if the enterprise finally has no property to distribute, it can directly enter the closing stage. However, it is a long process to clear assets and verify funds.

Therefore, if the enterprise enters bankruptcy liquidation, the best time unit is month, and usually this cycle is at least more than one year.

2. What are the steps of bankruptcy liquidation?

1) In the event that the company is facing bankruptcy, the shareholders will make a resolution to dissolve the company.

2) Establish a liquidation team within 15 days and start liquidation. The liquidation group of a limited liability company consists of shareholders or a liquidation company.

3) The liquidation team shall notify the creditors within 10 days from the date of establishment of the group, and make an announcement in the newspaper within 6 days. The creditor shall, within 30 days from the date of receipt of the notice, and within 45 days from the date of announcement if the notice is not received, declare the debt claims to the liquidation group.

Legal basis

Enterprise Bankruptcy Law of the People's Republic of China

Article 20. After the people's court accepts the bankruptcy application, the civil litigation or arbitration of the debtor that has begun but has not yet been concluded shall be suspended; After the administrator takes over the debtor's property, the litigation or arbitration continues.

<> legal analysis: 1. It is forbidden to pay off creditors individually. 2. If the people's court decides to accept the bankruptcy application, it will appoint an administrator at the same time, and the administrator will manage a series of matters related to bankruptcy.

3. After the people's court accepts the bankruptcy application, the preservation measures related to the debtor's property shall be lifted and the enforcement procedure shall be suspended. 4. Changes in civil litigation or arbitration: First, if other civil dispute cases with the debtor as the plaintiff are still in the first-instance procedure, the people's court to which the case is filed shall transfer the case to the people's court that accepts the bankruptcy case; Where the case has already been subjected to the second-instance trial procedures, the people's court receiving the lawsuit shall continue to accept it.

Second, if the trial has been concluded but the enforcement has not been completed in other debt dispute cases in which the debtor is the defendant, the enforcement shall be suspended, and the creditor shall declare the creditor's rights to the people's court accepting the bankruptcy case with the legal documents that have taken effect at the end of the year; Where the trial has not yet been concluded and there are no other defendants or a third party with no independent claim, the litigation shall be suspended, and the creditor shall declare the creditor's rights to the people's court accepting the bankruptcy case. 5. After the people's court accepts the bankruptcy case, it has the exclusive jurisdiction to defend the debtor's civil lawsuit.

Legal basis: Enterprise Bankruptcy Law of the People's Republic of China Article 20 After the people's court accepts the bankruptcy application, the civil litigation or arbitration of the debtor that has begun but has not been concluded shall be suspended; After the administrator takes over the debtor's property, the litigation or arbitration continues. State disadvantages.