In relation to the Enterprise Bankruptcy Law of China:
(b) state the rule of settlement of bankrupt expenses and the community liabilities during the liquidation process. (4 marks)
参考答案:
(i) In accordance with Article DC of the Enterprise Bankruptcy Law, the community liabilities shall be settled through the debtor’s assets at any time during the process of liquidation. (ii) Where the bankrupt expenses and community debts are generated from the liquidation process and the debtor’s assets are not enough to pay off both the bankrupt expenses and community debts, the bankrupt expenses shall be paid off in priority. Where the debtor’s assets are not enough to pay off the bankrupt expenses or community debts, they shall be settled proportionally to the total amount of the bankrupt expenses and community debts.