[Direct answer]In the Beijing area, the decision-making power lies with the administrator. For contracts that have not been fully performed by both parties, after entering bankruptcy, the administrator can choose between continuing to perform the contract or terminating it: if the administrator decides to continue the performance, the other party must perform the contract and may require the provision of a guarantee. If no guarantee is provided, it shall be deemed that the contract has been terminated; if the administrator fails to notify the other party within two months from the date of acceptance of the bankruptcy application, or fails to respond within 30 days from the date of receipt of the reminder, it shall be deemed that the contract has been terminated. Entering bankruptcy does not automatically invalidate the contract, but the fate of your contract enters the "administrator's clock": a two-month silent period and a 30-day reminder period. Active reminders can lock in the outcome in advance.

I. Problem Background and Typical Scenarios

The equipment supplier had just signed the contract when the client company was declared bankrupt; the goods were on the way, the payment hadn't been made, and the deposit had already been paid — the declaration of bankruptcy was like an emergency stop, requiring every step of the contract to be re-adjusted in terms of both targets and pace.

II. Key points of contention

First, the right of the administrator to choose the contract to be performed. Second, the time rule for considering the contract as terminated. Third, the guarantee and payment for continued performance. Fourth, the declaration of creditor's rights for the part of the contract that has already been performed.

III. Professional analysis by Henglue Lawyers

The first layer concerns the manager's right of choice and commercial logic: In bankruptcy proceedings, the manager has the right to decide whether to terminate or continue to perform contracts that have not been fully performed by both parties (pending contracts). Whether to continue or terminate depends on the manager's commercial logic: continue for contracts beneficial to the bankruptcy estate (sales contracts where the buyer has paid a down payment, or procurement contracts with favorable pricing); terminate for burdensome contracts (heavy payment obligations, market price inversion). For enterprises, understanding the manager's position can predict the fate of their contracts - first determine whether the contract is an asset or a liability for the "bankruptcy estate pool", then decide whether to issue a notice or wait. The second layer involves two timeframes: The manager's decision to terminate or continue to perform is not indefinitely suspended - if no notice is given to the other party within two months from the date of acceptance of the bankruptcy application, it is deemed terminated; if the manager decides to continue to perform, or fails to respond within 30 days after the other party issues a notice, it is also deemed terminated. The waiting party is not a passive observer: timely issuing a written notice can advance the 30-day countdown. If the two-month silence period expires automatically, the consequences of termination are handled according to the rules, with payments and deposits converted into bankruptcy claims. The initiative of the timeline can be taken back from the manager through negotiations over guarantees. The third layer concerns the contractual arrangements for continued performance: If the manager decides to continue to perform, the other party has the right to request guarantees, and failure to provide them is deemed termination - this converts the "risk of continued performance" into a bargaining chip for guarantee negotiations. At the same time, if the manager continues to perform, the payments made by the other party after performance are classified as "common benefit debts" (debts generated for the common interests of all creditors), which can be repaid at any time and take priority over ordinary debts. Under the continued performance state, your payment status is at the "common benefit debt level", which is vastly different from the pro rata repayment of ordinary debts after termination. This is why transactions with remaining performance capabilities should strive to continue performance and closely monitor payment milestones. The fourth layer involves red lines before and after bankruptcy acceptance: After the court accepts the bankruptcy application, the debtor's repayment to individual creditors is invalid, and all settlement, set-off, and guarantee arrangements must be re-examined - individual repayments within six months before bankruptcy acceptance (advanced repayments to individual creditors, supplementary guarantees) carry the risk of being revoked; contractual set-off rights in bankruptcy have special exercise rules (creditors with debts to the debtor before acceptance may claim set-off under certain conditions); cross-procedural contract disputes often involve four battlefields of performance, declaration, revocation, and set-off simultaneously. First, define the contract status (fully performed, neither party fully performed, unilaterally performed), then position it accordingly - fully performed contracts do not enter the manager's right of choice and are directly handled as creditor-debtor declarations, which is the first cut of classification.

IV. Practical Suggestions and Legal Basis

The first step is to confirm the time of bankruptcy acceptance and classify and locate the contract status. The second step is to initiate the 30-day clock for timely written reminders of unperformed contracts. The third step is for the administrator to select the contracts to be continued and require them to provide guarantees and lock in the repayment of beneficial debts. The fourth step is to file claims for debts that have been discharged or become invalid on schedule and track the arrangements for exclusion and set-off. Main legal basis: Articles 16, 18, 32, and 40 to 42 of the Enterprise Bankruptcy Law of the People's Republic of China; specific applications shall be subject to the currently effective provisions.

5. Henglu Law Firm's Advice

There are three key points in bankruptcy enforcement: first, the fate of the contract is left to the administrator; second, the two-month silence and the 30-day reminder serve as two yardsticks; third, continued performance requires guarantees, and the loan is upgraded to a common creditor's debt that can be settled at any time. Before and after acceptance, the boundaries are clear, and creditors' claims must be filed on schedule. This case was handled by Beijing Henglue Law Firm.Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent. For contract disputes involving bankruptcy procedures, you can proceed through the following channels:Business and contract disputes in enterprisesThe service obtains an overall solution, which involves the integration of creditor's claim declaration and enforcementCreditor's rights and debts, and enforcementFor reference, you can refer to the section on corporate risk management in the documentSpecial servicesFor inquiries regarding cross-border bankruptcy matters, please consult the relevant column\nFinancial capital and cross-border transactions involving foreign entities.Team.

VI. Frequently Asked Questions

Q1: If the other party goes bankrupt, does the contract automatically become invalid?

No. The administrator decides whether to terminate or continue to perform the contract that neither party has fully fulfilled; if the administrator remains silent within the statutory period, it shall be deemed that the contract has been terminated.

Q2: What should I do if the manager never responds to me?

The 30-day countdown for the written reminder begins, and if there is no response within the time limit, it shall be deemed as a termination; if no notification is made within two months after acceptance, it shall also be deemed as a termination.

Q3: Can we prioritize receiving the payment for the goods that we continue to fulfill our contractual obligations for?

The administrator decided to continue to perform the contract, and the funds generated from the other party's performance of the contract are considered beneficial debts, which should be repaid at any time and enjoy a much higher status than ordinary bankruptcy claims.

Q4: What should I do with the deposit I've already paid?

After the contract is rescinded, the paid amounts will be converted into bankruptcy claims and declared according to the procedure, and the compensation will be made according to the proportion of ordinary claims.

Q5: Can the repayments made before bankruptcy be recovered?

There is a risk of revocation of repayment to individual creditors within the past six months before acceptance, and the specific situation will be reviewed in accordance with the rules on the right of revocation in bankruptcy cases.

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 Lawyers for specific situations.

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, so as to avoid missing the statutory time limit. →Business and commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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 time.