What are the main substantive examinations conducted by the People's Court after receiving a bankruptcy application?

If an enterprise is not operating well and becomes insolvent, it can apply for bankruptcy to the People's Court. The People's Court needs to determine whether to grant bankruptcy based on the company's operating conditions, and it needs to be carefully reviewed. So, what are the main substantive reviews conducted by the People's Court after receiving the bankruptcy application? Below, the editor of Legal Savior Network will introduce the specific content to you in detail.

What are the main substantive examinations conducted by the people's court after receiving a bankruptcy application

(1) Strictly examine whether bankrupt enterprises are qualified for bankruptcy

According to China's "Bankruptcy Law", "Company Law", " According to the provisions of the Civil Procedure Law and relevant judicial interpretations, as long as the enterprise applying or being applied for bankruptcy is an enterprise owned by the whole people and an enterprise legal person not owned by the whole people, such as an enterprise owned by the whole people, a collective enterprise, a foreign-funded enterprise, an associated enterprise, a private enterprise, etc. If it is considered that it has the qualifications for a bankrupt subject, it will be accepted; however, in principle, it will not be accepted for enterprises owned by the whole people in the following two situations: First, public enterprises and enterprises that have a significant relationship with the national economy and people's livelihood, relevant government departments will provide funding or take other measures To help pay off debts; second, to obtain a debt repayment guarantee and be able to pay off debts within 6 months from the date of bankruptcy application. For those enterprise branches, individual industrial and commercial households, rural contract operators, individual partnerships, etc. that do not have legal person qualifications and apply for bankruptcy, they will not be accepted according to the law because they do not have legal subject qualifications.

(2) Examine whether the bankrupt enterprise has reached the bankruptcy limit

The bankruptcy boundary, that is, the reasons for bankruptcy and the conditions for bankruptcy, refer to the circumstances under which the court can declare the debtor bankrupt. It is also the standard and reason for the court to judge whether to declare the debtor bankrupt. "Bankruptcy Law" The conditions for bankruptcy stipulated in Article 3 are "the enterprise has suffered serious losses due to poor management and cannot pay off its due debts."

Chapter 19 of the "Civil Procedure Law" stipulates that "serious losses and inability to pay off due debts". Some debtors have not yet reached the threshold of bankruptcy and have reached bankruptcy through human factors. The purpose of creating the illusion of a limit is to evade debts in bankruptcy. According to the relevant provisions of Article 31 of the "Provisions on Several Issues Concerning the Trial of Enterprise Bankruptcy Cases", whether the bankruptcy limit has been reached can be examined from the following three aspects: First, the debt that cannot be discharged must be within the time limit has expired and has been repaid at the request of the creditor; secondly, the debt that cannot be repaid must be all debts due and not a certain debt that cannot be repaid; thirdly, the debtor has no way to deal with the existing debt objectively, rather than subjectively. . For the above three aspects of review, whether it is a debtor's application or a creditor's application, corresponding evidence should be provided to confirm whether the debtor has reached the bankruptcy limit. If the debtor stops paying due debts and is in a continuous state, if there is no contrary evidence, it can Presumed to be unable to pay off debts when due.

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