[Direct answer]In the Beijing area, yes, but usually only a proportion of the debt can be recovered, and the creditor must file a claim within the specified time limit. According to Article 45 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), after the people's court accepts the bankruptcy application, it shall determine the deadline for creditor's claims, which shall be calculated from the date of issuing the announcement of accepting the bankruptcy application, with a minimum of 30 days and a maximum of three months. Creditors with guarantees such as mortgages and pledges may be given priority to recover their debts from specific assets, and the unpaid portion will be converted into ordinary claims. Creditors with guarantors may seek compensation separately, but cannot receive compensation twice. Ordinary claims shall be distributed in accordance with the order and proportion specified in Article 113. After receiving the notice, do not wait and see.

I. Problem Background and Typical Scenarios

When a client enters bankruptcy proceedings, many enterprises believe that there's no hope of recovering the debt, so they neither file a claim nor attend the creditors' meeting, ultimately giving up even the chance of a pro rata distribution. Common scenarios include: the other party suddenly ceasing production, the administrator sending a notice of claim filing; the payment having been invoiced but not yet recovered; secured creditors not knowing how to exercise their priority rights; guarantors still being available but no one claiming their rights; and even accepting individual settlements separately after the bankruptcy application is accepted, only to have the administrator recover the funds later.

II. Key points of contention

First, the declaration period and supplementary declaration. Late declaration does not mean an absolute loss of rights, but the property that has been distributed will no longer be redistributed, and the debtor will bear the expenses incurred in reviewing the creditor's claims. Second, the order of repayment. According to Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), after the bankruptcy estate is used to repay the bankruptcy expenses and common benefit debts in priority, it shall be used to repay the workers' wages, social insurance premiums and statutory compensation in turn, then the unpaid taxes, and finally the ordinary bankruptcy claims. If the amount is insufficient to repay in the same order, it shall be distributed proportionally. Third, guaranteed claims. The right holders who enjoy a security right on the debtor's specific property have the right to priority repayment on that specific property, and the unpaid part shall be converted into ordinary claims. Fourth, the manager's right of contract selection. After the people's court accepts the bankruptcy application, the manager has the right to decide whether to continue to perform or terminate the contracts that have not been fully performed by both parties, and notify the other party. Fifth, revocable individual repayments. According to Articles 31 and 32 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), acts such as gratuitous transfer and premature repayment of undue debts within one year before acceptance can be revoked. If the manager requests the revocation of the repayment to individual creditors within six months before acceptance when the debtor already meets the bankruptcy conditions, the manager may also request the revocation of the repayment.

III. Professional analysis by Henglue Lawyers

When handling the cross-cutting issues of accounts receivable and bankruptcy, Henglue usually conducts three-step judgments first: 1. Nature of the creditor's rights: Check whether there are mortgages, pledges, or guarantees; 2. Time points: Confirm whether the case falls within the filing period and whether there are recoverable individual settlements or gratuitous transfers; 3. Extended subjects: Verify whether the shareholders have made false investments or withdrawn funds, and whether the liquidation obligors have neglected to fulfill their liquidation obligations. In similar cases in the Beijing region, administrators generally require creditors to provide written materials to prove the contractual basis and payment of the creditor's rights. Invoices or oral reconciliations alone often need to be supplemented by other evidence. For guarantors, a distinction should be made between general guarantees and joint and several guarantees: - Joint and several guarantees can be directly claimed against the guarantor; - General guarantees require first enforcing the debtor's property before the unpaid portion can be satisfied; - When the debtor goes bankrupt, creditors can either file claims for their rights or require the guarantor to assume liability, but they cannot receive duplicate compensation. - Security rights holders should promptly assert their priority rights against the administrator to avoid being listed as ordinary creditors due to non-filing. For related matters, please refer to the following documents:Creditor's rights and debts, and enforcementAndContract disputes.

IV. Practical suggestions and legal basis

According to Articles 44 to 48 of the Enterprise Bankruptcy Law of the People's Republic of China (adopted on August 27, 2006 and implemented on June 1, 2007) regarding the declaration of creditor's claims, Article 109 regarding the priority of secured creditors to be compensated, Article 113 regarding the order of repayment, Articles 31 to 32 regarding the revocation of individual repayments, and Article 188 of the Civil Code of the People's Republic of China (implemented on January 1, 2021) regarding the three-year statute of limitations, it is recommended that: First, immediately check the amount of creditor's claims after receiving the notice from the administrator, and organize contracts, invoices, delivery and acceptance certificates, and account statements; Second, submit creditor's claim materials within the time limit, and claim priority rights for secured claims; Third, simultaneously evaluate the guarantors, shareholders' contributions, and clues of related-party transactions, and initiate separate lawsuits if necessary; Fourth, attend the creditor's meeting and exercise voting rights on the property distribution plan and reorganization plan; Fifth, promptly request the administrator to exercise the right of revocation for abnormal repayments and property transfers before acceptance. For cross-regional enforcement and asset verification, it can be handled bySpecialised legal servicesCoordinate and arrange everything in an organized manner.

5. Henglu Law Firm's Advice

In bankruptcy proceedings, the cost of remaining silent is high. Once the declaration period has passed, there is almost no chance of recovering the full amount. Secured creditors must actively assert their priority rights, and guarantors must pursue recovery simultaneously but cannot receive compensation twice. If it is found that the other party is concentrating on repaying individual creditors before the bankruptcy is accepted, the administrator should be promptly informed and an application for revocation should be made to protect the fair compensation of all creditors. For cases where the registered capital has not been paid in full or shareholders have withdrawn their investment, relevant measures can be taken in combination with the circumstances of the case.\nFinancial capital and cross-border transactions involving foreign entities.We will discuss the approach to asset verification separately.Beijing Henglue Law FirmIt is recommended that enterprises prioritize the management of accounts receivable and not wait until the other party goes bankrupt before taking action.

VI. Frequently Asked Questions

Q1: Can I recover the full amount after declaring my claim?

In most cases, this is not possible. Ordinary claims are distributed according to the proportion of the bankruptcy estate to the total amount of claims, and the repayment rate depends on the size of the distributable assets. Secured claims can be repaid preferentially with specific assets, with a relatively higher recovery rate, but still subject to the limits of the liquidation value of the collateral and the order of priority. According to Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China (implemented on June 1, 2007), if there is not enough to repay in the same order, the distribution will be made on a pro rata basis. Therefore, it is often crucial to verify the clues of the collateral and guarantors in advance in order to improve the recovery rate.

Q2: What materials are required to file a claim for debt?

Generally, these include: creditor's claim forms, proof of the subject's qualifications, contracts and orders, delivery receipts and acceptance certificates, invoices, reconciliation statements and transfer records, collection letters, as well as rights certificates such as guarantee contracts and surety contracts; for those claiming interest or liquidated damages, a calculation explanation and basis should also be attached. If there are effective judgments, arbitration awards or mediation agreements, they should also be submitted. The materials should retain the originals for reference and indicate that the copies submitted are consistent with the originals when submitting copies.

Q3: How much does it cost to participate in the bankruptcy proceedings?

The filing of creditor's claims itself usually does not incur fees, and the necessary expenses for reviewing creditor's claims are handled in accordance with the rules of bankruptcy proceedings. If a lawyer is appointed to file the claims, attend creditor's meetings, or pursue recourse against guarantors separately, the fees will be charged in accordance with the contract, which is usually lower than the cost of initiating a lawsuit separately. If it is necessary to verify the assets of related parties or initiate a lawsuit for revocation of rights, the fees will be calculated separately based on the specific workload. It is recommended to conduct a feasibility assessment first.

Q4: How long does it take from submitting the application to receiving the allocated funds?

The declaration period is from 30 days to three months, and the liquidation process usually takes several months to more than a year; the time involved in reorganization or where the assets are difficult to liquidate is even longer. The distribution is generally carried out in batches according to the plan set by the administrator, which requires voting by the creditors' meeting and approval by the people's court. During this period, you should pay close attention to the administrator's notifications and meeting arrangements to avoid delaying the receipt of funds due to failing to confirm the distribution plan in time.

Q5: What should I do first?

First, check whether the amount of the creditor's claim and the supporting documents are complete, and submit the declaration materials to the administrator within the declaration period; at the same time, sort out the clues of guarantees and guarantors, and evaluate whether to pursue recovery separately to prevent missing the opportunity to hold other responsible parties accountable while waiting for the distribution of assets. If any abnormal settlement or transfer of property is found before the acceptance of the bankruptcy case, the creditor should promptly report it to the administrator and cooperate with the administrator in exercising the right of revocation to safeguard the fair compensation of all creditors.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Law Firm for specific cases.

If you are 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 limit. →Business and commercial legal services·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 you encounter disputes, please consult a practicing lawyer in time.