Research on Issues Related to the Conversion of Execution Procedures to Bankruptcy Procedures

In current judicial practice, the system of 'conversion from enforcement to bankruptcy' is an important institutional innovation, which is of great significance for resolving debt disputes, optimizing resource allocation, and maintaining economic order. On the afternoon of June 20, 2025, at Denghu Classroom, Lawyer Lin Li gave a wonderful presentation on the topic of 'Research on Issues Related to the Conversion of Execution Procedures to Bankruptcy Procedures'.

Lawyer Lin Li first introduced the basic concept and target positioning of 'transforming enforcement into law enforcement'. Execution to bankruptcy 'refers to the conversion of execution to bankruptcy. When the debtor falls into a serious financial crisis in civil execution procedures, is unable to repay its due debts, and clearly lacks the ability to repay, the court may, upon application, transfer the case to bankruptcy proceedings and initiate bankruptcy liquidation or reorganization. Its core goal is to clear debts through legal means, restore the healthy operation of economic entities, protect the legitimate rights and interests of creditors, while promoting the elimination of ineffective production capacity and promoting a virtuous cycle of the market economy.

In the sharing, Lawyer Lin explained in detail the process of initiating the 'enforcement to bankruptcy' procedure, which can be initiated by the applicant for enforcement, the debtor for enforcement, or the enforcement court actively soliciting the opinions of the applicant for enforcement or the debtor. After submitting the application, the executing court will transfer the case to the people's court at the domicile of the executed person for review. After the court confirms that it meets the bankruptcy conditions, it will officially enter bankruptcy proceedings and appoint a bankruptcy administrator; The administrator takes over the debtor's property, evaluates and liquidates it, or attempts to develop a debt restructuring plan; Finally, execute the liquidation plan, distribute remaining assets to creditors, or implement a restructuring plan to help the enterprise resume operations until the procedures are completed.

In addition, Lawyer Lin Li also analyzed the procedural connection issues of the 'enforcement to bankruptcy' system, specifically:

1. Execution actions that have been completed before the acceptance of bankruptcy cases shall remain valid

2. Before accepting bankruptcy cases, it is still necessary to pay attention to the issue of property renewal

3. Other related courts shall suspend the execution, but it shall not affect the execution of other executed persons in the same execution case

4. After ruling to accept bankruptcy, the property of the debtor shall be transferred to the court or administrator that accepts the bankruptcy case.

5. If the bankruptcy application is not accepted after examination, the executing court shall resume the execution of the debtor

6. After declaring bankruptcy, a ruling shall be made to terminate the execution of the executed enterprise.

After listening to Lawyer Lin's sharing, every colleague felt that they had benefited greatly. Thank you very much for Lawyer Lin's sharing today. We look forward to learning more useful knowledge through Denghu Classroom!