What exactly does bankruptcy mean?
If all the property of a company can not pay off its outstanding debts, the company is deemed to be bankrupt. After the court has announced that a company is bankrupt, the court will select members of a liquidating group to handle the preservation, clearing, evaluation, disposing and distribution of the company's properties. At the same time, the bankrupt company will lose the right to manage and dispose of its own properties, but will have the obligation of providing relevant accounting records and the list of all its debtors and debtees, and answering to relevant inquiries. The liquidation of the insolvent properties is conducted according to stipulated procedures.
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