I. According to the provisions of Articles 40, 109 and 113 of the Enterprise Bankruptcy Law, the order of bankruptcy liquidation shall be as follows:
1. Creditors and debtors shall offset each other's debts against the debtor's property, except for those stipulated in Article 40;
2. Secured claims;
3. Bankruptcy property shall be liquidated in the priority of After liquidating the bankruptcy expenses and ****beneficial debts, it shall be liquidated in the following order:
(1) the wages and medical treatment, disability benefits and pension expenses owed by the bankrupt to the employees, the basic pension insurance and basic medical insurance expenses owed which shall be transferred to the employees' individual accounts, as well as the compensations which shall be paid to the employees as stipulated by the laws and administrative regulations;
(2) the social insurance costs and bankruptcy claims which are owed by the bankrupt except for the preceding item social insurance costs other than those stipulated in the preceding item and taxes owed by the bankrupt;
(3) ordinary bankruptcy claims.
If the bankruptcy estate is insufficient to satisfy the claims of the same order of satisfaction, it shall be distributed in proportion.
The salaries of directors, supervisors and senior management of an insolvent enterprise are calculated according to the average salary of the employees of that enterprise.
2. The repayment of bankruptcy expenses and **** benefit debts is governed by the following principles:
1. Bankruptcy expenses and **** benefit debts are readily discharged by the debtor's property.
2. If the property of the debtor is insufficient to satisfy all the bankruptcy expenses and ****beneficial debts, the bankruptcy expenses shall be satisfied first.
3, the debtor's property is not enough to pay all the bankruptcy costs or *** benefit debt, according to the proportion of liquidation.
Summary: the order of liquidation of bankruptcy costs and **** benefit debt, external according to the order, internal according to the proportion.
Third, bankruptcy costs:
(a) the litigation costs of the bankruptcy case;
(b) management, realization and distribution of the debtor's property costs;
(c) the administrator's costs of carrying out their duties, remuneration and the cost of hiring staff.
Four, *** beneficial debts:
(i) debts arising from the administrator's or the debtor's request to the other party to fulfill a contract that has not been fulfilled by either party;
(ii) debts arising from the debtor's property being subjected to causeless administration;
(iii) debts arising from the debtor's unjustified enrichment
(iv) labor remuneration and social insurance costs payable for the continuation of the debtor's business and other debts arising therefrom;
(v) debts arising from damages caused by the administrator or related personnel in the performance of their duties;
(vi) debts arising from damages caused by the debtor's property.