Question:
The provisional payment for bankruptcy expenses is deposited into the bank account opened by the People’s Court (Point b, Clause 2, Article 38 of the Bankruptcy Law). So, does the People’s Court open a shared account for all bankruptcy cases or does it need to open a separate account for each bankruptcy case?
Answer:
After being assigned to handle a bankruptcy procedure request and determining the validity of the request, the Judge may decide to open a separate bank account to manage the funds deposited (provisional payments for bankruptcy expenses, proceeds from the sale of the enterprise’s assets, cooperative transactions, etc.) and decide on withdrawals to cover expenses such as Trustee fees, audit fees, publication fees, and other incurred costs.
Therefore, for each bankruptcy case, the Court should have a separate account for easier management of expenses related to each specific bankruptcy case. Once the bankruptcy case is concluded, the Court should close that account.
