One, the basic principles of bankruptcy debt of self-employed households

When the self-employed households encountered operational difficulties, unable to repay the debts due, should first clarify the principles of bankruptcy debt. This includes fair and just treatment of debt, to protect the legitimate rights and interests of creditors, while minimizing the economic burden of the self-employed.

Two, declared bankruptcy and debt settlement

Individual households in the case of inability to repay debts, you can apply to the local people's court for bankruptcy. Once the bankruptcy application is approved, a debt liquidation process will take place. During the liquidation process, the court will appoint a liquidation group to clean up, value, dispose and distribute the property of the self-employed.

Three, the order of debt settlement

In the process of debt liquidation, the order of debt settlement needs to be clarified. According to the provisions of the "Chinese people's *** and the state enterprise bankruptcy law", the bankruptcy estate in the priority of bankruptcy expenses and *** benefit debts, in accordance with the following order of liquidation: first of all, the bankrupts owed employees' wages and medical treatment, disability benefits, pension costs, as well as the basic old-age pension insurance, basic medical insurance costs; second is the bankrupts owed to pay in addition to the provisions of the previous social insurance costs and taxes owed by the bankrupts; Lastly, ordinary bankruptcy claims.

Four, debt negotiation and reorganization

In the process of bankruptcy liquidation, individual households and creditors can also try to debt negotiation and reorganization. Through negotiation, the two sides can reach a certain debt relief, deferred repayment and other agreements to reduce the debt burden of individual households. At the same time, creditors can also be reorganized through the reorganization of the assets of self-employed households, in order to achieve better debt recovery.

V. Legal responsibility and risk prevention

When dealing with bankruptcy debts, self-employed persons should abide by relevant laws and regulations and should not take improper means such as evading debts and transferring properties. Otherwise, they will bear the corresponding legal responsibility. At the same time, self-employed people should strengthen the awareness of risk prevention in their daily operation and reasonably plan their business strategies to avoid falling into bankruptcy.

In summary:

Self-employed households facing bankruptcy debt, should follow the principle of fair and just treatment, in accordance with legal procedures for bankruptcy application and debt settlement. In the process of debt liquidation, the order of liquidation should be clarified and attempts should be made to negotiate and reorganize debts with creditors. At the same time, self-employed people should strengthen the awareness of risk prevention and comply with relevant laws and regulations in order to reduce the economic burden and safeguard their own rights and interests.

Legal basis:

The People's Republic of China Enterprise Bankruptcy Law

Article 2 stipulates:

Enterprise corporations that cannot settle their debts as they fall due and whose assets are insufficient to settle all their debts or who are obviously lacking in the ability to do so, shall liquidate their debts in accordance with the provisions of this Law.

Article 7 stipulates:

A debtor in the circumstances provided for in Article 2 of this Law may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation. If the debtor is unable to settle its debts as they fall due, the creditors may submit to the people's court an application for reorganization or bankruptcy liquidation of the debtor. Where an enterprise or legal person has been dissolved but has not liquidated or has not completed liquidation, and its assets are insufficient to satisfy its debts, the person legally liable for liquidation shall apply to the people's court for bankruptcy and liquidation.

The Chinese people's *** and national code

Article 118 provides:

Civil subjects enjoy claims in accordance with law. A claim is the right of a right holder to request a specific obligor to do or not to do a certain act due to contract, tort, causeless management, unjust enrichment and other provisions of the law.