Mutual debts can net — but manufacturing a set-off after you know of bankruptcy is a classic avoidance story.
China’s Enterprise Bankruptcy Law recognises set-off of mutual obligations arising before acceptance, with restrictions designed to prevent opportunistic acquisition of claims to manufacture set-off. Administrators and courts police abuse. This wiki is set-off orientation. Creditor claims explain declaration. Avoidance covers preferential and fraudulent acts. Secured recovery is a different priority tool.
4 questions before you choose the route.
This page identifies the right question and evidence. It does not determine the legal outcome on a reader’s facts.
Were debts mutual and pre-acceptance?
Eligibility.
MutualWas the claim acquired to manufacture set-off?
Abuse test.
AbuseDeclared in claims process?
Process.
FileAdministrator position known?
Fight.
AdminWorking rule: Map the regulated role before marketing or launch in China.
The signal ledger.
These facts move the question beyond a label and into a product, money-flow and control analysis.
Bring a compact evidence docket—not a pitch deck.
Give a compliance team or counsel the operating facts that reveal the perimeter.
Questions people ask before they build.
Short answers for orientation. The right result can change with the service model and current rules.
Is contractual set-off automatic in bankruptcy?
EBL overlays apply. Do not assume.
Where is avoidance?
Open /avoidance-transactions-in-china-bankruptcy.
Primary authorities
Reviewed sources support orientation, not a fact-specific assessment.