Introduction The essence of bankruptcy is to liquidate the assets of the debtor and resolve the debtor-creditor relationship through legal means and procedures. Therefore, the confirmation of claims is crucial to the entire bankruptcy process. The recognition of claims begins with the declaration of claims. Today, the author provides some insights into the often overlooked issue of notifying known creditors in bankruptcy practice.

Article 14 of the Bankruptcy Law stipulates that "the people's court shall notify the known creditors and make public announcements within twenty-five days from the date of accepting the bankruptcy application." The purpose of notification is to inform the known creditors in the bankruptcy case to promptly declare their claims, and the purpose of the announcement is to inform the creditors who cannot be notified and unknown creditors, as well as other interested parties, to promptly declare their claims in the bankruptcy proceedings.

Although the law stipulates that the people's court shall notify the known creditors, the duty to assist the court in notifying the known creditors lies with the administrator. However, in practice, it is generally the administrator who fulfills this duty. Administrators often underestimate the importance of notifying known creditors and may rely entirely on public announcements or notifying the debtor. Unbeknownst to them, this can pose significant risks for the administrator. In judicial practice, there are numerous compensation disputes arising from the administrator's failure to fulfill the duty to notify known creditors. Based on this, the author discusses how to fulfill the duty of notifying known creditors from the perspective of bankruptcy practice.

Obtaining Information on Known Creditors Article 8 of the Bankruptcy Law clearly stipulates that when a debtor files for bankruptcy, they must submit a statement of financial status, a list of debts, a list of claims, relevant financial and accounting reports, etc., to the people's court. Article 11 states that when a creditor files for bankruptcy, the people's court shall serve the debtor within five days from the date of the ruling. The debtor shall, within fifteen days from the date of service, submit a statement of financial status, a list of debts, a list of claims, relevant financial and accounting reports, etc., to the people's court.

Therefore, there is a list of claims in the case files of the court that accepted the bankruptcy, which is the reason for the court to notify the known creditors as stipulated in the Bankruptcy Law. The administrator can notify known creditors based on this list of claims. Furthermore, after taking over the debtor's assets, books, documents, and other materials, the administrator can confirm known creditors through financial records and determine the creditors through legal procedures such as litigation, arbitration, notarization, etc.

Notifying Creditors to Declare Claims The Bankruptcy Law does not explicitly specify the form in which the administrator should notify known creditors. Given the variety of modern communication methods, the administrator can use various methods such as mailing, email, phone calls, text messages, WeChat, and other online communication tools.

In practice, phone calls are the simplest and most easily manageable method, especially when dealing with a large number of known creditors, and are generally the first choice for administrators. However, it is important to note that if creditors are notified by phone and they do not declare their claims, the administrator needs to retain evidence of the notification. It is recommended to use written notification through mail for such creditors, preferably using EMS for mailing and keeping the mailing receipt. If known creditors who have not declared their claims are not properly notified in writing, and if they verbally reply to the administrator waiving their claims, in case of disputes, the administrator will find it difficult to provide evidence.

In summary, the administrator should fully utilize their subjective initiative within their scope of responsibilities, actively fulfill their duties, collect information on known creditors, promptly notify them to declare their claims, and not rely on general announcements or solely on debtor notifications. Administrators should be diligent and responsible, exhaust various measures, and attempt to resolve conflicts between creditors and debtors at an early stage while taking preventive measures to mitigate risks.