Want to log out，Liquidate first，Do you know what liquidation is?

Want to log out，Liquidate first，Do you know what liquidation is? Company liquidation is one of the procedures for company cancellation，It is also the program with the largest workload among the logout programs.，Only by solving the liquidation problem，The company can be deregistered smoothly。Today let’s talk about two forms of liquidation – bankruptcy liquidation and compulsory liquidation.。

Similarities between compulsory liquidation and bankruptcy liquidation：1、Both can be initiated by creditors or shareholders2、All cases were liquidated by a liquidation team formed by the People’s Court3、Steps are similar to 4、Both results lead to the loss of the company. The difference between the two：one、There are different reasons for bringing proceedings。

Application for compulsory liquidation generally occurs under the following circumstances:，First, when the business period stipulated in the company's articles of association expires or other reasons for dissolution stipulated in the company's articles of association arise.;Second, the shareholders’ meeting is dissolved;Third, the business license was revoked in accordance with the law.、Ordered to close or revoked;Fourth, the company encountered serious difficulties in its operation and management.，Continuing to exist will cause significant losses to shareholders’ interests.，cannot be solved through other means，Shareholders holding more than 10% of the voting rights of all shareholders of the company，Requesting the People's Court to dissolve the company。

Applying for bankruptcy liquidation means that the corporate legal person cannot pay off its due debts.，And the assets are insufficient to pay off all debts or there is an obvious lack of solvency.。Related reading："[Case Analysis] The company's operations are unsustainable，shareholder

Require

Is it okay to dissolve? "two、When filing a procedure，Whether the company's assets are sufficient to repay all the company's debts varies。

If the company's assets are sufficient to repay all debts, compulsory liquidation procedures should be initiated if the company is to be dissolved.;The company is unable to pay its debts as they fall due and the assets are insufficient to repay all debts，or obviously lack of solvency，The company should go through bankruptcy liquidation procedures。This is the biggest difference between the two、The two methods of repaying debt are different。If a company cleans up its creditor-debt relationships through compulsory liquidation，The corporate legal person status shall be terminated after all debts have been paid off in full and the remaining property has been distributed.。

If it passes the bankruptcy liquidation procedure, the enterprise's legal person status should be terminated after the debts are paid off equitably.。Compulsory liquidation procedures are predicated on full payment of debts，Bankruptcy liquidation is the inability to pay off debts in full, so debts must be paid off in a certain order.，Debts in the same order will be paid off in proportion when the bankruptcy estate is insufficient.，that is, fair compensation。Four、The laws they are based on are different。five、In the process of liquidation，The litigation status of the company is different。

Since the compulsory liquidation process is initiated on the premise that the company's assets are sufficient to repay all debts，therefore，The initiation of compulsory liquidation proceedings does not have the effect of freezing the property of the company in liquidation.。

The prerequisite for bankruptcy liquidation is that the company's assets are insufficient to repay all debts.，therefore，Once bankruptcy liquidation proceedings are initiated，For disputes arising from the process of declaring claims, only bankruptcy claims confirmation litigation can be filed.，Second, all preservation measures against bankrupt enterprises should be lifted，Execution proceedings should be suspended，All creditor's rights and debt relationships are included in the bankruptcy liquidation process and are resolved in a package，This ensures fair payment for all creditors。

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