问答题 In relation to the Enterprises Bankruptcy Law of China, state the legal effect of the acceptance of an application for bankruptcy by the court:
问答题 (a) in terms of the preservative measures against the assets of the debtor; (4 marks)
【正确答案】In accordance with Article 19 of the Enterprise Bankruptcy Law, where an application for bankruptcy is accepted by a people’s court, the relevant preservative measures against the debtor’s assets shall be dissolved. These measures include preservative measures during a civil litigation and preservative measures prior to a civil procedure. The relevant debtor’s assets shall be listed as the bankrupt assets after the releasing of the preservative measures.
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问答题 (b) in terms of the enforcement procedure against the relevant debtor; (4 marks)
【正确答案】In accordance with Article 19 of the Enterprise Bankruptcy Law, where an application for bankruptcy is accepted by the people’s court, the relevant enforcement procedures shall be suspended. The enforcement procedures include the enforcement of civil judgements, conciliation documents and arbitral awards, etc. Creditors may, based on the effective legal documents after the suspension of the enforcement procedures, claim their credits to the relevant people’s court accepting the application for bankruptcy.
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问答题 (c) in terms of pending legal actions against a debtor. (2 marks)
【正确答案】In accordance with Article 20 of the Enterprise Bankruptcy Law, where a people’s court accepts an application for bankruptcy, any pending civil litigations or arbitration proceedings involving the relevant debtor shall be suspended. The civil litigations or arbitration proceedings will be resumed after a bankruptcy administrator, designated by the competent court, takes over the debtor’s assets.
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