All businesses of a company declared bankrupt must immediately stop completely and enter bankruptcy liquidation procedures.

A company applying for bankruptcy protection can continue to operate its own business in order to strive for reorganization or profit and avoid bankruptcy.

2. Different procedures

When filing for bankruptcy, all the business of the company must be completely stopped immediately. The trustee of bankruptcy property will "clean up" (auction) the company's assets, and the proceeds will be used to repay the company's debts, including debts to creditors and investors.

Applying for bankruptcy protection is not a direct bankruptcy liquidation, because they still hope that the following companies can reorganize and start operations again, but some companies eventually end up in liquidation.

3. Different controllers

When applying for bankruptcy, all businesses of the company must be stopped immediately, and the assets of the company shall be "cleaned up" (auctioned) by the trustee of bankruptcy property.

Applying for bankruptcy protection is not direct bankruptcy liquidation, because they still hope that the following companies can reorganize and reopen.

Extended data:

According to the Supreme People's Court's Provisions on Several Issues Concerning the Trial of Enterprise Bankruptcy Cases, the debtor who applies for (is applied for) bankruptcy shall have the qualification of legal person, while enterprises, individual industrial and commercial households, partnership organizations and rural contracted households without the qualification of legal person shall not have the qualification of bankruptcy subject. When a state-owned enterprise applies to the people's court for bankruptcy, it shall submit a document that its superior competent department agrees to its bankruptcy; Other enterprises shall provide documents that the founder or shareholders' meeting decides the bankruptcy of the enterprise.

When applying for bankruptcy, the debtor shall submit the following materials to the people's court:

(1) A written bankruptcy application;

(2) Enterprise qualification certificate;

(3) A list of the legal representatives and principal responsible persons of the enterprise;

(four) the situation of enterprise employees and the resettlement plan;

(5) A written explanation of the losses of the enterprise, with an audit report attached;

(six) the list of assets of the enterprise as of the date of filing for bankruptcy, including tangible assets, intangible assets and enterprise investment. ;

(seven) the details of the account opened by the enterprise in the financial institution, including the approval materials, account number, funds, etc.;

(8) A statement of enterprise's creditor's rights, indicating the debtor's name, domicile, debt amount, occurrence time and repayment requirements of the enterprise;

(nine) the enterprise debt statement, indicating the enterprise name, domicile, the amount of creditor's rights and the time of occurrence;

(10) The guarantee involved by the enterprise;

(eleven) the lawsuit that has occurred in the enterprise;

(twelve) other materials that the people's court deems necessary. When applying for bankruptcy of the debtor, the creditor shall submit the following materials to the people's court:

(a) the facts and evidence of the creditor's rights;

(two) the nature and amount of the creditor's rights, whether there is a guarantee, and attach evidence;

(3) Evidence that the debtor is unable to pay off due debts.