[Direct answer]There are three types of entities with different rights and responsibilities. According to Article 7 of the Enterprise Bankruptcy Law of the People's Republic of China, if the debtor is unable to pay off due debts and the assets are insufficient to pay off all debts or clearly lack the ability to pay off debts, they may apply to the people's court for reorganization, conciliation, or bankruptcy liquidation; creditors may apply for reorganization or bankruptcy liquidation, but cannot apply for conciliation; if the enterprise legal person has been dissolved but not liquidated or not completed the liquidation, and the assets are insufficient to pay off debts, the person responsible for the liquidation according to law shall apply to the people's court for bankruptcy liquidation. Therefore, the application for conciliation belongs exclusively to the debtor, while both the debtor and the creditor can apply for reorganization and liquidation.

I. Problem background and typical scenarios

The company is insolvent, and the boss wants to gain a respite through restructuring or settlement, while creditors hope to receive compensation as soon as possible. Some people are also confused about whether "creditors can apply for bankruptcy or settlement". The subject of initiating bankruptcy proceedings is directly related to the type of application: if you want to settle, it can only be initiated by the debtor; if you want to restructure or liquidate, both parties can promote it. Understanding this point is essential for choosing the correct procedure and strategy.

II. Key points of contention

First, the reasons for bankruptcy and the conditions for acceptance. Second, the differences in application rights between debtors and creditors. Third, the application obligations of liquidation obligors. Fourth, the relationship between application types and procedural objectives.

III. Professional analysis by Henglue Lawyers

The first layer concerns the causes of bankruptcy and the conditions for acceptance: If an enterprise legal person is unable to pay off its due debts, and its assets are insufficient to settle all debts or it clearly lacks the ability to repay, it may apply for bankruptcy according to law; after the court accepts the application, it will appoint a manager to take over the property and business affairs, and creditors may file their claims within a specified period. The second layer relates to the application rights of the parties: The debtor may apply for reorganization, settlement, or bankruptcy liquidation, and may choose any of these three procedures; creditors may apply for reorganization or bankruptcy liquidation, but cannot apply for settlement, as the settlement plan involves the debtor's repayment arrangements and must be proposed by the debtor itself; investors who contribute more than one-tenth of the debtor's registered capital may also apply for reorganization under certain conditions. The third layer concerns the obligations of liquidation obligors: If an enterprise legal person has been dissolved but not liquidated or not completed its liquidation, and its assets are insufficient to settle debts, the persons responsible for the liquidation (such as the liquidation team, shareholders, etc.) shall apply for bankruptcy liquidation according to law. This is a statutory obligation rather than a right, and failure to perform it may result in corresponding liabilities. The fourth layer relates to the objectives and choices of the procedures: Reorganization aims to rescue the enterprise, allowing for debt adjustment, investment introduction, and continued operation. The reorganization plan, once approved by voting and by the court, will be implemented. Under certain conditions, the court may approve it compulsorily; settlement focuses on debt relief and deferral, with a relatively simple procedure. The settlement agreement, once approved by the creditors' meeting and recognized by the court, will take effect; bankruptcy liquidation involves asset liquidation and distribution and the termination of the enterprise. In an enforcement case handled by Henglue Law Firm, the company had no assets available for enforcement and met the conditions for bankruptcy. The lawyer instead argued for accelerated maturity of shareholders' contributions, ultimately requiring the shareholders to bear supplementary compensation liabilities within the scope of their unpaid contributions, demonstrating that the connection between bankruptcy causes and contribution responsibilities is often overlooked. This case was handled by Beijing Henglue Law Firm.Yuan HangThe attorney (practice certificate number: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The first step is to assess whether the enterprise meets the conditions of being unable to repay its due debts, being insolvent, or clearly lacking the ability to repay. The second step is to select the target procedure: either reorganization or settlement for business recovery, or liquidation for exit and compensation. The third step is for creditors to file applications for reorganization or liquidation and declare their claims, paying attention to the declaration deadline. The fourth step is for the liquidation obligors to apply for bankruptcy liquidation in accordance with the law in a timely manner to avoid assuming liability. The main legal basis includes Article 7, Article 45, and Article 70 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), as well as the provisions on liquidation responsibilities in the Company Law of the People's Republic of China. The specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Advice

The three sentences regarding bankruptcy applications are as follows: The debtor may apply for reorganization, settlement, or liquidation; the creditor may only apply for reorganization or liquidation; the settlement application is exclusive to the debtor; and the liquidation obligor has the legal obligation to apply for liquidation. For matters involving bankruptcy and debt settlement, you can proceed through the following channels:Creditor's rights and debts, and enforcementFor services involving comprehensive solutions for corporate restructuring and governance, they can be combined with other services.Business and contract disputes in enterprisesFor the sections involving shareholder responsibilities, you can refer to the following for reference:Intellectual property protection and corporate lawFor any questions or difficulties, please feel free to consult us.Special servicesTeam.

VI. Frequently Asked Questions

Q1: Can creditors apply for bankruptcy?

Yes, but you can only apply for reorganization or bankruptcy liquidation, not for settlement. When applying, you need to prove the existence of the creditor's rights and that the debtor is unable to pay off the due debts, and meet the criteria for bankruptcy.

Q2: Who applies for the settlement?

Only the debtor can apply for it. The settlement involves arrangements for debt relief and deferred repayment, and the debtor needs to propose a plan on his own. Creditors cannot actively apply for the settlement procedure.

Q3: What are the reasons for bankruptcy?

If a corporate legal person is unable to pay off its due debts, and its assets are insufficient to pay off all debts or it clearly lacks the ability to pay off debts, it shall be deemed to have grounds for bankruptcy, which is a prerequisite for the court to accept the bankruptcy application.

Q4: Can the liquidation obligor not apply to the court for liquidation?

No. If the enterprise legal person has been dissolved but has not been liquidated or the liquidation has not been completed and the assets are insufficient to pay off the debts, the person responsible for the liquidation in accordance with the law shall apply for bankruptcy liquidation. If he fails to perform his duties, he may be held accountable.

Q5: How to choose between restructuring, reconciliation, and liquidation?

Look at the goal. If you want to save the company and keep it operating, choose reorganization; if you want to alleviate the pressure through debt relief and deferral, choose settlement; if you want to exit the market and distribute the assets at a reduced price, choose bankruptcy liquidation. The choice should be based on the assessment of the company's business prospects.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limits.\nLegal services for creditor-debtor disputes·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.