Before the court has ruled on the initiation of rehabilitation or approved the settlement or announced bankruptcy, the debtor may apply to the court for liquidation; even if there is only one creditor, the debtor may still file such application.

In applying for liquidation, the debtor shall submit the description of his/her property and income status, and the roster of his/her creditors and debtors.
The roster of creditors under the preceding paragraph shall state the following matters:
1. Names or titles and addresses of creditors, and the amount, reason and category of each claim.
2. Identification of all property with security rights or preferential rights, and the amount of claims which cannot be satisfied for repayment after the exercise of such rights.
The roster of debtors under paragraph 1 of this article shall state names or titles and addresses of debtors, and amount, reason, category and security of each debt.
The description of property and income status under paragraph 1 shall state the following matters and shall include supporting documents:
1. Inventory of properties, and their natures and locations.
2. Whether the debtor has engaged in business activities in the most recent five years, and the average turnover per month, if any.
3. Amounts, reasons and categories of incomes and necessary expenses.
4. Persons to be supported by the debtor under the law.

Before ruling on the initiation of the liquidation process, the court may make inquiries on its own initiative with the debtor, the creditors and other related persons, and may set a date and order the debtor to report the status of any change in the debtor's property within two years before the application for liquidation.
If the debtor violates the obligation to report in accordance with the preceding paragraph, the court may dismiss the application for liquidation.

The court's ruling on the initiation of the liquidation process shall include its year, month, day and hour, and shall become effective immediately.
No appeal may be taken from a ruling under the preceding paragraph.

The provisions of other laws relating to the qualifications and restrictions on rights of bankruptcy shall apply mutatis mutandis to the debtor subject to the court's ruling on the initiation of the liquidation process.

If the property of the debtor is insufficient to pay off expenses for the liquidation process, the court shall initiate the liquidation process and simultaneously terminate the liquidation process.
An appeal may be taken from the ruling on simultaneous termination of the liquidation process under the preceding paragraph.
The ruling under paragraph 1 of this article shall be publicly announced and shall be served on the known creditors.

After ruling on the initiation of the liquidation process, the court shall publicly announce the following matters:
1. The main text and the year/month/day/hour of the ruling on the initiation of the liquidation process.
2. Name, address and office of the administrator selected to handle liquidation affairs; or title, statutory agent and office or business location of the administrator, if it is a juristic person.
3. Debtors of the debtor and holders of the property belonging to the liquidation estate may not make repayment or deliver their property to the debtor, but shall immediately return it to or notify the administrator or a person designated by the court thereof. A person, who fails to comply with the requirements in the preceding sentence without reason during the period for declaration of claims, shall be liable for compensation of the damage to the liquidation estate caused thereby.
4. The periods for declaration and supplemental declaration of claims, during which the creditors shall declare their claims to the administrator, or to the court if no administrator is selected, and shall submit supporting documents, if any.
5. The effect of deprivation of claims if such claims are not declared or supplementarily declared according to the provision of the preceding subparagraph.
6. The period during which any objection to the declared or supplemental declared claims shall be raised to the court.
7. The date and place of and the matters to be discussed at the creditors' meeting, if such meeting is convened.
The provisions of paragraphs 2 to 5 of Article 47 shall apply mutatis mutandis to the circumstance under the preceding paragraph. However, if a creditor exercises his/her right in accordance with paragraph 1 of Article 26, the right may not be exercised after the day preceding the date of public announcement of the final distribution table.

When ruling on the initiation of the liquidation process, the court shall notify the competent registration authority to make all necessary registrations regarding debtors and the liquidation estate.
The administrator may also apply to the registration authority under the preceding paragraph for liquidation registration by providing that authority with the ruling on the initiation of the liquidation process.
If the debtor has acquired rights in rem of real estate by inheritance, compulsory enforcement, expropriation, court judgment, or other non-juridical act before the registration, the court may, on application of the administrator, notify the registration authority to register that property as owned by the debtor.
For the return or transfer of the liquidation estate in the liquidation registration requested by the administrator, the court may, on application of the administrator, request the registration authority to cancel its liquidation registration and then register the property as provided in the preceding paragraphs of this article.

After the court rules on the initiation of the liquidation process, the clerk shall immediately record the closing accounts in the debtor's account book regarding business property, sign and seal it, and make an abbreviated record of the status of the account book.

After the debtor applies for liquidation, his/her lifestyle may not exceed the normal level of the general public. The court may also, on application of interested parties or on its own initiative, impose restrictions thereon.
Without permission of the court, the debtor may not leave his/her place of residence. The court may also notify the Customs and Border Protection agency to restrict his/her exit.

If the debtor has any of the following circumstance, the court may arrest him/her, to the extent necessary to compel his/her appearance:
1. After being duly notified, the debtor fails to appear in the court without any justifiable reason.
2. It is obvious that the debtor is likely to flee or hide.
3. It is obvious that the debtor is likely to conceal, destroy, or dispose of the property belonging to the liquidation estate.
4. The debtor violates the provision of paragraph 2 of the preceding Article without any justifiable reason.

If any of the following circumstances apply to the debtor, the court may place the debtor into custody, if it is obviously difficult to proceed with the liquidation process without placing the debtor into custody:
1. Any circumstance under subparagraphs 2, 3 or 4 of the preceding Article.
2. The violation of the provisions in paragraph 1 of Article 102 or paragraph 1 of Article 103.
The custody period may not exceed three months.

When the reason for custody ceases to exist, the person in custody shall be released.

In addition to the provisions of the preceding three Articles, the provisions of the Compulsory Enforcement Act shall also apply mutatis mutandis to the arrest and to the custody.

After the court initiates the liquidation process, the debtor shall no longer have the right to manage and dispose of his/her property belonging to the liquidation estate.
After the court's ruling on the initiation of the liquidation process, any juridical acts taken by the debtor with respect to the property belonging to the liquidation estate shall be inoperative unless acknowledged by the administrator.
In the circumstance under the preceding Paragraph, the counterparty of the juridical act may demand the administrator to state whether he/she acknowledges such act or not within 10 days. If the administrator fails to give a definite reply within the prescribed period, he/she shall be deemed to have refused to acknowledge such act.
Any juridical act conducted by the debtor on the date of the court's ruling on the initiation of the liquidation process shall be presumed to be an act conducted after the initiation of the liquidation process.

An administrator who refuses an acknowledgment under paragraph 2 of the preceding Article may ask the court to order the counterparty to return the money or other property he/she received, to cancel the registration of the right he/she acquired, or to conduct any other act of restoration to the status quo ante.
In the event of an appeal from the ruling under the preceding paragraph, the appeal court shall conduct an oral argument before ruling.
When rulings under the preceding two paragraphs become final, they shall have the same effect as final judgments.
If a counterparty fails to perform in accordance with a ruling under paragraph 1 of this article, the court may, on application of the administrator, carry out compulsory enforcement, or request the registration authority to cancel the registration of the counterparty's acquisition of rights. However, if the counterparty files an appeal, the enforcement shall be suspended.

A debtor of the debtor, who makes repayment after the court's ruling on the initiation of the liquidation process without knowledge of the initiation of the process, may assert such repayment against the creditors. If he/she makes repayment with knowledge of the initiation, he/she may assert the repayment against the creditors to the extent that the liquidation estate received a benefit from the amount for which he/she claims repayment.
If the repayment of a debtor under the preceding paragraph is made before the court's public announcement of the initiation of the liquidation process, such debtor shall be presumed to have no knowledge of the fact; if the repayment is made after the public announcement, he/she shall be presumed to have knowledge of its fact.

If a statutory agent of the debtor is liable for compensation of damage to the debtor, the court may, on application of the administrator or the creditor or on its own initiative, order him/her to make compensation. If there are more than one statutory agents who are liable for the same cause, they shall be ordered to make compensation jointly.
In the circumstance under the preceding paragraph, the court shall, before ruling, give the parties the opportunities to state their opinions, unless they are served by constructive notice.
For an appeal from a ruling under paragraph 1 of this article, the appeal court shall conduct oral argument before ruling on the appeal.
When the rulings under paragraphs 1 and 3 of this article become final, they shall have the same effect as final judgments.