[Direct answer]It is necessary to distinguish the time points for judgment. According to Article 16 of the "Enterprise Bankruptcy Law of the People's Republic of China" (adopted on August 27, 2006 and implemented on June 1, 2007), after the people's court accepts the bankruptcy application, if the debtor's debt repayment to individual creditors is invalid, the repaid amount shall be recovered and included in the debtor's property; within six months before acceptance, if the debtor cannot repay the due debts and the assets are insufficient to repay all debts or obviously lack the ability to repay, but still repays individual creditors, the administrator has the right to request the people's court to revoke the repayment according to Article 32, except that the individual repayment benefits the debtor's property. The individual repayments received by creditors during this period may be recovered, so creditors should pay attention to the progress of the bankruptcy proceedings and file their claims simultaneously.

1. Problem background and typical scenarios

Such issues often arise in several situations: First, the debtor repays close creditors suddenly a few days before the bankruptcy application is accepted, and other creditors question its fairness; Second, after the application is accepted, the debtor's financial staff did not receive notice and still paid part of the goods in accordance with the usual practice; Third, the enterprise pays off individual suppliers preferentially during the crisis by means of cash or goods as payment; Fourth, the secured creditor claims whether the priority compensation for the collateral is affected. When handling similar cases in the Beijing area, the administrator reviews the repayment actions within the six-month critical period more strictly, and the relevant procedures can be referred to for reference.Creditor's rights and debts, and enforcement casesColumn.

II. Key points of contention

Focus One: Whether the repayment occurs before or after the acceptance of the bankruptcy application. Repayments made after the acceptance of the bankruptcy application are absolutely invalid, while those made before the acceptance enter the review period for revocation. Focus Two: Whether the debtor has already met the criteria for bankruptcy during the critical period, namely being unable to repay due debts when they fall due, having insufficient assets to settle all debts, or demonstrating an obvious lack of repayment capacity. Focus Three: Irrevocable repayments that benefit the debtor's assets, such as paying expenses necessary for business continuity or settling secured debts within the scope of the collateral value. Focus Four: The subject of exercising the right of revocation is the trustee, and creditors may also provide clues to promote the process. Focus Five: The party receiving the repayment shall return or compensate the trustee for the recovered assets. Focus Six: Protection for bona fide third parties. Specific provisions shall be subject to the currently effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Lawyers

Taking the shareholder liability dispute case handled by our firm as an example, we can observe the practical logic of identifying the causes of bankruptcy and protecting creditors' interests. Ma * had a valid judgment-confirmed intermediary service fee claim of 423,500 yuan against Company A. During the enforcement process, Company A had no assets available for enforcement and was ordered to terminate the current enforcement. After accepting the client's entrustment, our lawyers retrieved the industrial and commercial archives and found that shareholder Liu * subscribed 9 million yuan and shareholder Zhang * subscribed 1 million yuan, with the subscription period ending in 2039. None of them had actual payment records. The lawyers argued that since Company A had no assets available for enforcement after exhausting all enforcement measures, it met the criteria of being unable to pay off its due debts and clearly lacking repayment ability, which constituted a cause of bankruptcy. However, the shareholders failed to apply for bankruptcy for a long time, so the shareholders' subscribed capital should be accelerated to maturity. Therefore, a lawsuit was filed for shareholders' liability for damaging the interests of Company A's creditors. The court determined that Company A was unable to pay off its due debts and clearly lacked repayment ability, meeting the criteria of a cause of bankruptcy but failing to apply for bankruptcy. It ordered Liu * and Zhang * to bear supplementary compensation liabilities within the scope of their unpaid subscriptions of 9 million yuan and 1 million yuan respectively. The logic of identifying the cause of bankruptcy in this case is consistent with the standards in individual repayment avoidance: when a company is in a payment crisis, it is difficult to prioritize repayment to individual creditors over ensuring fair repayment for all creditors. This case was handled by Beijing Henglu Law Firm.Yuan HangThe attorney (practice license number: 11101202110286151, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: 1. When receiving repayment funds, verify the debtor's operating status. If you hear that the debtor is on the verge of bankruptcy, assess the risk of the funds being recovered and retain communication records. 2. As a creditor, if you discover that the debtor has made sudden repayments to related parties during a crisis, promptly provide clues to the administrator. 3. As an administrator or debtor's representative, review the financial transactions of the past six months to determine whether they trigger revocation. 4. For expenses that are truly necessary for maintaining operations, retain evidence of the benefits to claim exceptions. 5. Upon receiving the court's acceptance ruling, immediately stop making payments to the debtor and cease enforcement of the debtor's assets. Legal basis: Article 16 of the Enterprise Bankruptcy Law of the People's Republic of China stipulates that individual repayments after acceptance are invalid; Article 32 stipulates that individual repayments made within six months before acceptance that meet the criteria for bankruptcy can be revoked and their beneficiaries may claim exceptions; Article 34 stipulates that the administrator is responsible for recovering the property obtained through invalid or revocable acts.

5. Henglue Law Firm's Reminder

Risk Alert: First, the six-month critical period is calculated by counting backward from the date of bankruptcy acceptance. Enterprises with frequent transactions should consider this risk when designing their accounts receivable period; Second, there are no exceptions to the invalidity of settlements after acceptance. If financial personnel continue to make payments after learning of the fact of acceptance, they may be held personally liable; Third, the counterparties whose settlements are revoked should, in addition to returning the principal, also compensate for any losses caused to the debtor's property; Fourth, creditors should avoid making private arrangements for priority repayment. It is recommended to consult as soon as possible.Beijing Henglu Law FirmOn the official website, in the similar column, grasp the key points of offense and defense in the revocation and recovery process.

VI. Frequently Asked Questions

Q1: Is it valid for the company to repay a sum of money after the bankruptcy proceedings have been accepted?

It is invalid. According to Article 16 of the Enterprise Bankruptcy Law, after the people's court accepts the bankruptcy application, the debtor's debt repayment to individual creditors is invalid, and the funds shall be returned to the administrator and included in the debtor's property, to be distributed equally among all creditors. If the enterprise's financial staff still make payments to external parties after knowing the fact of acceptance, the recipients have the obligation to return the funds. If they refuse to return them, the administrator may request the people's court to recover the funds.

Q2: Will all repayments received within the past six months before the application are revoked?

Not necessarily. Revocation requires that the debtor already had grounds for bankruptcy at the time of repayment, and the repayment did not benefit the debtor's property. If the repayment occurred within the scope of normal business operations, or the repayment of secured claims within the limits of the collateral value, or the payment of expenses necessary to maintain operations, etc., which benefited the property, it shall not be revoked in accordance with Article 32 of the Enterprise Bankruptcy Law. Each case should be checked one by one to verify the use of funds and the company's repayment ability at that time.

Q3: What should creditors do if their claims are revoked or declared invalid for settlement?

After the funds are recovered, the creditor's claim is not extinguished and the creditor can still file a claim with the administrator to receive fair compensation along with other creditors in accordance with the bankruptcy procedures. If there are any objections to the claims verified and confirmed by the administrator, the creditor can file a lawsuit for claim confirmation with the people's court. It is recommended to check the declaration materials at the same time when receiving the recovery notice to avoid affecting the compensation ratio due to improper procedural connection.

Q4: Who exercises the right of revocation, and how is it initiated?

The right of revocation shall be exercised by the administrator. If the administrator discovers individual settlements within the critical period when investigating the debtor's property, he may request the people's court to revoke them; if the creditor has clues, he may report them to the administrator in writing. If the administrator fails to initiate a lawsuit, the creditor's meeting may urge him to do so in accordance with the procedures. The entire process is based on facts and evidence of fund flows. It is recommended to fix the bank statements, accounting vouchers, and transaction background materials as soon as possible.

Q5: What should I do if I suspect that the debtor has made a sudden repayment to a related party?

The first step is to collect the time, amount, and background information of the debtor's repayment to a specific creditor; the second step is to submit written clues to the administrator or the accepting court, explaining that the debtor was already insolvent when the repayment occurred; the third step is to simultaneously declare one's own creditor's rights to avoid missing the declaration deadline; and the fourth step is, if necessary, to entrust a lawyer to verify the flow of funds and the relationship between related parties, which can be referred to for reference.Creditor's rights and debts, and enforcement casesColumn.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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. →Legal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglu 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.