Your Chinese debtor can no longer pay off its debts to you alone. You shall be paid together with all of its creditors. You also need to declare your creditor rights to its bankruptcy administrator.
A study on how the CISG is applied by CIETAC sheds light on the ins and outs of its application in arbitration in China.
It will lose control over its assets and management, and will no longer be able to pay off any particular debt independently.
Because it might deny afterward that it was its account, and thus that it received your payment.
A recent study on the Application of the United Nations Convention on Contracts for the International Sale of Goods in Chinese Courts provides a perspective into how Chinese courts apply and interpret the CISG.
The examination procedure of the court for accepting bankruptcy cases can be summarized into four stages: applying for bankruptcy, conducting formal examination, accepting the application and accepting the bankruptcy case.
If a creditor wishes to apply for bankruptcy of a Chinese debtor, it shall submit the following materials to the court.
If a debtor files an application for bankruptcy, it shall submit the following materials to the court.
The following parties may apply for bankruptcy of the debtor: the debtor itself, creditors, liquidation obligors, relevant governmental authorities and employee creditors.
Enterprises can all go bankrupt. In a few places, like Shenzhen, natural persons can go bankrupt. Chinese central and local governments and public institutions cannot go bankrupt. In addition, law firms cannot go bankrupt, either.
In China, court fees and attorney fees depend on the amount of your claim. But some fees are fixed, namely the cost of notarization and authentication of some documents in your country.
A Chinese enterprise may go bankrupt if both of the following conditions are met: first, it fails to pay its debts as they fall due; and second, its assets are inadequate to pay off all debts or it is clearly insolvent.
It is intended to prevent the company’s shareholders from escaping liabilities by hiding under the corporate veil of limited liability.
The party presenting evidence shall pay the translation fee first, and then the losing party shall bear it.
The ‘foreign official documents’ here refer to official documents formed outside the territory of China.
The answer is YES, as long as the international sales of goods contracts are concluded between parties whose places of business are in different Contracting States of the United Nations Convention on Contracts for the International Sale of Goods (the “CISG”). In such cases, the Chinese courts shall apply the Convention automatically.
Because it can help you accurately identify your debtor.
You’d better preserve the debtor’s property through the court to prevent the debtor from evading debt by transferring assets.
