[Direct answer]There are two possible outcomes: If the manager decides to continue to perform the contract, the financial leasing contract will be executed as usual. The unpaid rent will be paid to the manager's designated account according to the original payment schedule, and the leased asset will remain in the lessee's possession and use. If the manager decides to terminate the contract, the contract will be terminated upon receipt of the notice of termination. The lessor will retrieve the leased asset, and the rent, deposit, and losses incurred from the early recovery of the leased asset that the lessee has paid but not fully amortized will be converted into bankruptcy claims and declared according to the procedures. At the same time, the manager may also collect the overdue rent. Which path to take is not chosen by the lessee, but depends on the manager's choice of whether both parties have not yet fully performed the contract, as well as the time when the court accepts the bankruptcy ruling. At this moment, the most important thing for the lessee is not to argue whether they should pay the rent or not, but to organize a set of materials that can withstand creditor review, including the handover certificate of the leased asset, the historical rent ledger, and the payment receipts.

1. Problem background and typical scenarios

Financial leasing differs from ordinary leasing in that: the lessor buys the equipment from the seller according to the lessee's choice, and then hands over the equipment to the lessee for use. The rent paid by the lessee in installments is essentially the consideration for the principal and interest of the financing, rather than a simple usage fee. Due to this three-party structure, once the lessor enters bankruptcy proceedings, the lessee faces not just minor issues such as whether the deposit can be refunded, but a series of sudden changes in the relationships between parties and assets. The lessor's account for collecting rent may be frozen, and further payments may not be recognized by the bankruptcy trustee. After the administrator takes over, he/she needs to inventory all the lessor's assets, and the leased assets registered under the lessor's name may be listed as objects to be recovered. As for the rent that has not yet expired, it needs to be redefined whether it is a continuing debt or a claim that needs to be declared. For the lessee, the most passive situation is being required to continue paying rent while being informed that the leased assets will be recovered. There are also lessees who stop paying rent after hearing that the lessor has gone bankrupt, only to be sued for breach of contract by the administrator. Common triggering scenarios include the lessor being a financial leasing company, being applied for bankruptcy by creditors due to poor operation, the court ruling to accept the application and appointing an administrator, and the lessee first learning of the news from the announcement or the administrator's notice. Whether the lessee can stabilize the situation largely depends on his/her actions in the first few weeks after the announcement of the acceptance of the bankruptcy application: whether to immediately stop paying to the original account, whether to collect the contracts and payment vouchers in chronological order, and whether to file the claims that need to be declared within the filing window.

II. Key points of contention

The first focus is whether the contract is one in which neither party has fully performed their obligations. In financial leasing, the lessor is obligated to ensure that the lessee peacefully possesses and uses the leased asset, and to assist in handling relevant procedures; the lessee is obligated to pay the rent on schedule, properly maintain the asset, and dispose of it according to the contract upon its expiration. As long as these obligations have not been fully performed, the contract falls within the scope of the administrator's right to choose whether to terminate or continue to perform it. The right of choice lies with the administrator, and the lessee cannot unilaterally demand continuation or unilaterally declare termination, a point that is often misunderstood. The second focus is the ownership and recovery of the leased asset. The ownership of the leased asset is registered in the lessor's name, which is the main basis for the administrator to claim recovery. However, recovery requires that the contract has been terminated or that the agreed recovery conditions have been met, and issues such as the identification of the equipment, mortgages, seizures, and whether the actual possessor acted in good faith must also be addressed. If the lessee has paid most of the rent, the leased asset has been incorporated into the production line, or the asset has been resold, the scope of recovery and the calculation of residual value will be more complex. The third focus is the nature of the payments and the declaration procedures. The overdue rent is a property that the bankruptcy estate should recover. After the contract is terminated, the rent will no longer be generated on a monthly basis. The rent paid in advance by the lessee, the deposit, and losses such as production stoppages and alternative financing caused by the early recovery of the equipment may be declared as bankruptcy claims. Each item must be corresponding to the contract, payment receipts, and loss certificates, and cannot be generalized into a total amount. The fourth focus is on procedural coordination: the court accepting the bankruptcy case usually has centralized jurisdiction over related civil litigation against the debtor. There are deadlines specified in the announcement for creditor declarations, and those who have objections to the records in the creditor's list must file lawsuits for creditor confirmation within the prescribed period. The time of the first creditor's meeting is also subject to the announcement. If the jurisdiction, deadlines, or procedures are chosen incorrectly, even the most well-founded substantive claims may be rejected.

III. Professional analysis by Hengluo Law Firm

When handling such consultations, we first clarify the three key issues in sequence before discussing the materials. First, the timing of accepting the bankruptcy ruling and the selection of the administrator. To obtain the court's ruling on accepting the bankruptcy application and the decision on appointing the administrator, we need to confirm whether the administrator has issued a written statement on whether to continue performing or terminating the contract. Before the administrator's decision is clear, the lessee should not unilaterally suspend payments or continue making payments to the original lessor's account. It is safer to send a written inquiry to the administrator and request the designation of a receiving account, keeping both the letter and the reply on file. Second, the separation of payments and claims. If the contract is continued, future rent payments shall be made to the administrator's designated account according to the original payment schedule, with each payment noted corresponding to the period. If the contract is terminated, we need to separately account for the due rent we owe and the claims we have against the bankruptcy estate. The former should be prepared to respond to verification, while the latter should be submitted within the filing window. The two cannot be offset against each other. Third, an inventory of the leased assets. The model, serial number, storage location, current operating status, whether there are additions or resales, and whether other rights burdens have been established for the equipment must all be documented in a list and accompanied by on-site photos. This not only determines whether the administrator can successfully retrieve the assets, but also how to calculate the residual value. Based on the cases handled by our firm, the organization of facts and evidence in such disputes is particularly critical. Clients often search for phrases such as "Is the fake marriage agreement valid?", "How to refund for an invalid household registration agreement?", and "What are the consequences of a contract that violates public order and good customs?". Zhang Na and Wang Xiaoyong were once married. To help their child obtain a Beijing household registration, they decided to fake a marriage to gain household registration status. On February 4, 2023, Zhang Na signed a "Consulting Brokerage Service Contract" with A Law Firm and paid 150,000 yuan in service fees. On March 17, 2023, the couple divorced, and on March 21, Zhang Na signed a "Beijing Household Registration Marriage Agreement" with Zhao Chenyang, stipulating that the marriage was solely for household registration purposes and not a genuine marriage. On the same day, Wang Xiaoyong paid 100,000 yuan to Zhao Chenyang. However, due to policy restrictions, the household registration failed, leading to escalating conflicts between the parties. Zhang Na and Wang Xiaoyong委托律师团队提起诉讼，要求确认协议无效并追回款项。 The court adopted Hengluo Law Firm's arguments: confirming the invalidity of the agreement - based on Article 151 of the Civil Code of the People's Republic of China (effective January 1, 2021), the agreement is invalid from the outset if it evades household registration policies through a fake marriage and violates public order and good customs; and fully refunding the 100,000 yuan - as the direct recipient of the payment, Zhao Chenyang is obligated to return the funds to Wang Xiaoyong within a specified timeframe and bear the case acceptance fees and announcement fees. The court noted in its judgment that the parties' actions trampled on the sanctity of marriage and urged them to uphold correct values. This case was handled by Xue Shuhua, an attorney with Beijing Hengluo Law Firm (license number: 11101201211769926, validated by judicial administrative authorities). In this case, the parties' arguments clashed head-on: one side demanded the invalidation of the agreement and recovery of funds, while the other side defended against the claims by arguing that the agreement had already been signed and the funds received. The court's ruling focused on the contract's validity and payment flow - first ruling out the agreement's invalidity due to violating public order and good customs, then identifying the responsible party based on who directly received the funds and requiring them to return the funds, and finally allocating the case acceptance fees and announcement fees to the losing party.The types of evidence supporting this chain of determination are also clear: two written agreements, transfer receipts for 150,000 yuan and 100,000 yuan, a timeline of the signing and divorce process between February 4 and March 21, 2023, and materials related to the restrictions of household registration policies. The clarity of the timeline directly determines whether the nature of the funds can be traced back step by step. In the context of the bankruptcy of a financial leasing lessor, the principles are the same: the validity of the contract, the flow of funds, and procedural milestones all need to be linked through original documents. In the event of similar disputes, it is essential to secure key evidence and clarify legal relationships as soon as possible, and rely on professional lawyers to develop sound protection or defense strategies.

IV. Practical suggestions and legal basis

The actions of the lessee can be divided into four steps. First, upon seeing the court's announcement of bankruptcy acceptance or the administrator's notice, immediately suspend payments to the original lessor's account and send a written inquiry to the administrator regarding whether to continue performing the contract and to which account subsequent rent payments should be made. Keep the letter and the delivery receipt on file. Second, collect materials according to the timeline: the financial leasing contract and its annexes, rent payment schedules, delivery and acceptance certificates for the leased items, payment receipts and account statements for previous periods, receipts for deposits or security deposits, invoices, and a list of the equipment's current condition and on-site images. Preserve the original carriers of electronic evidence. Third, separate the arrears in overdue rent from the claims that can be declared and establish separate accounts. Submit the creditor's claim form and all supporting documents within the declaration period specified in the announcement. If there are objections to the entries in the creditor's list, file a lawsuit to confirm the creditor's rights within the prescribed period. Fourth, if the leased items need to be retrieved, cooperate in the inventory but require a handover list. If there are disputes over the residual value, improvements, or the proportion of paid rent, promptly raise written objections and preserve the appraisal materials. In terms of legal basis, the provisions of the Civil Code of the People's Republic of China (effective January 1, 2021) on financial leasing contracts, contract termination, and breach of contract are the basis for determining the parties' obligations and the nature of the payments. The rules on the property of corporate legal persons, liquidation, and dissolution in the Company Law of the People's Republic of China (amended on December 29, 2023 and effective July 1, 2024) are used to understand the ownership of the lessor's property after the company enters bankruptcy proceedings. The Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and effective January 1, 2024) stipulates jurisdiction, evidence presentation, and trial procedures. The Methods for Payment of Litigation Fees (effective April 1, 2007) specify that the acceptance fees for creditor's claim lawsuits are paid in increments based on the amount of the claim. Specific rules applicable to individual cases shall be subject to the currently effective laws, regulations, and judicial rulings. For cases involving similar contracts, please refer to our firm's review guidelines.Business and contract disputes in enterprisesThe scope of services provided by the special topic consultation service.

5. Henglu Law Firm's Reminder

There are three pitfalls that are easy to fall into. Firstly, if the lessor goes bankrupt, and the lessee either stops paying the rent on their own or continues to transfer the payment to the original account, they may be deemed to have performed improperly in the subsequent creditor review. The payment destination must be confirmed in writing with the administrator in advance. Secondly, if the money owed by the lessee and the money owed by the other party are mixed into one account, it will lead to unclear declaration procedures, omission of claims for security deposits and losses, and the ledger must be kept separately from the first day. Thirdly, when the equipment is required to be retrieved, do not hand it over verbally. It is necessary to form a list signed by both parties and take photos of it. Circumstances such as additions, modifications, and resale of the equipment must be separately explained. It should also be reminded that the declaration deadlines, creditor meeting arrangements, and objection periods in the bankruptcy proceedings shall be subject to the announcements and notifications of the accepting court. If the amount is large, the leased property has been sealed up, or there are multiple lessees involved, it is necessary to bring the contract, payment vouchers, and equipment lists to evaluate the solution as soon as possible, and act in accordance with the statutory time limits to protect rights and interests in a legal and safe manner. Do not trust any verbal result guarantees.

VI. Frequently Asked Questions

Q1: After the lessor enters bankruptcy proceedings, can the unpaid rent still be claimed according to the original contract?

It depends on whether the administrator decides to continue performing the contract. If the contract has not been fully performed by either party, the right of choice lies with the administrator: if the administrator decides to continue performing the contract, the unpaid rent will still be calculated according to the original payment schedule, but the recipient of the payment will be the account designated by the administrator, and the lessee shall no longer make payments to the original lessor's account; if the administrator decides to terminate the contract, the contract will terminate upon receipt of the notice of termination, and the unpaid rent will no longer be calculated according to the original contract. The lessee's prepaid but unamortized rent, security deposit, and losses arising from the early recovery of the leased property will be converted into bankruptcy claims and declared according to the procedures. The administrator may also collect the overdue rent. According to the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021) and the rules on the property of legal persons and the termination of contracts in the Company Law of the People's Republic of China (amended on December 29, 2023 and effective July 1, 2024), the specific handling shall be subject to the currently effective laws, regulations, and judicial rulings.

Q2: Which lease transfer documents should be attached when declaring a financing lease rent claim?

At least four types of documents are required. The first type is a financing lease contract and a rent payment schedule, which are used to lock in the amount and due date for each period. The second type is a delivery and acceptance certificate for the leased item, which specifies the model, serial number, storage location, and delivery status. The third type is payment receipts, reconciliation statements, and invoices from previous periods, which prove the number of payments made and the remaining balance. The fourth type is a deposit or security receipt, as well as a list of the equipment's current status and on-site images. Written materials should be submitted as originals or copies with a verification stamp, and electronic data should be retained in their original format. According to the provisions of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024) regarding the types of evidence and the burden of proof, a creditor's claim with incomplete supporting documents is easily subject to reduction during the review. In the aforementioned case, the 150,000 yuan service fee and 100,000 yuan payment were able to be identified in detail precisely because the agreement and transfer receipts corroborated each other.

Q3: How are the acceptance fees for lawsuits to confirm bankruptcy claims calculated? Are they accumulated in stages based on the declared amount?

The litigation fees are accumulated in stages according to the amount of the dispute, and they may not be calculated based on the full amount declared. According to the "Measures for the Payment of Litigation Fees" (implemented on April 1, 2007), the acceptance fees for property cases are paid in stages according to the amount of the litigation subject matter. When suing, the plaintiff pre-pays the fees, and the losing party ultimately bears the fees or shares them according to the proportion of liability; if the case is tried under the simplified procedure, the acceptance fees are reduced by half according to the regulations. There is no unified government pricing for attorney's fees. Attorney's fees are usually agreed upon in the power of attorney contract according to the complexity of the case, the amount of the subject matter, and the workload, either on a piecework basis, as a percentage of the subject matter, or on an hourly basis. In the aforementioned case, the court ordered Zhao Chenyang to bear the acceptance fees and announcement fees, which clearly shows that the burden of fees follows the outcome of the adjudication. Before taking action, it is necessary to calculate the amount of the confirmed creditor's rights, the pre-paid fees, and the attorney's costs together, and then decide whether to initiate a confirmation suit.

Q4: How long is the filing window between the court's decision to accept the case and the first creditors' meeting?

The filing window shall be subject to the time limit specified in the announcement issued by the court and the notice of the administrator. The filing window shall be registered in the ledger as soon as the announcement is issued. The creditor's filing period shall be calculated from the date on which the court issues the announcement of accepting the bankruptcy application. The first creditor's meeting is usually held after the filing period expires; if the filing is not made within the time limit, the creditor may file a supplementary filing before the final distribution of the bankruptcy estate, but the portion already distributed before that will not be redistributed to them, and the expenses incurred in reviewing and confirming the supplementary filing shall be borne by the filer. According to the provisions of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024) on time limits and service, and in combination with the currently effective laws, regulations and judicial rulings, we shall grasp the specific nodes. Do not confuse the announcement date, meeting date and objection period.

Q5: After the manager sends the letter of continuation of performance, which rental ledger should the lessee company sort out first?

First, separate the paid installments and the outstanding installments into two account books. For the paid installments, align the payment receipts, invoices, and reconciliation statements with the contract installments one by one, and mark the paid amount, payment date, and receiving account; for the outstanding installments, list the due dates and amounts for each installment, and confirm in writing the new receiving account designated by the manager to avoid continued payments to the original account being unrecognized. At the same time, file the security deposit balance, the inventory list of the leased items, and the images separately. According to the rules on contract performance and offsetting of payments in the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021), the party with clear records will be more proactive in creditor review and subsequent reconciliation. In the previous case, the court was able to reconstruct the payment flows at three time points (February 4, 2023, March 17, 2023, and March 21, 2023) precisely because of the clear written evidence of the timeline.

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 regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Xue Suhua·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. In case of disputes, please consult a practicing lawyer in time.