Bankruptcy in China


The Enterprise Bankruptcy Law of the People's Republic of China was first passed in 1986. On 1 June 2007, the new Enterprise Bankruptcy Law of the PRC came into force. It contains 136 articles, almost 100 more than the 1986 law it replaced, and consequently it is thought to be more complete legally.
The Enterprise Bankruptcy Law of the PRC was adopted in August 27, 2006, and became effective since June 1, 2007.

Contents

Chapter 1 General Provisions
Chapter 2 Application and Acceptance
Section 1 Application
Section 2 Acceptance
Chapter 3 Administrator
Chapter 4 Debtor's Property
Chapter 5 Expenses for Bankruptcy Proceedings and Debts of Common Benefits
Chapter 6 Declaration of Credits
Chapter 7 Creditors' Meeting
Section 1 General Provisions
Section 2 Creditors' Committee
Chapter 8 Reorganization
Section 1 Application for and Period of Reorganization
Section 2 Preparation and Approval of Reorganization Plan
Section 3 Execution of Reorganization Plan
Chapter 9 Composition
Chapter 10 Bankruptcy Liquidation
Section 1 Declaration of Bankruptcy
Section 2 Appraisal and Distribution
Section 3 Termination of Bankruptcy Proceedings
Chapter 11 Legal Liability
Chapter 12 Supplementary Provisions
The Enterprise Bankruptcy Law of the PRC 2007 applies only to the mainland of China. Due to the "One Country, Two Systems" policy of the PRC, different laws and regulations regarding to bankruptcy apply in Hong Kong and Macau.