When the people's court accepts an application for bankruptcy, it shall meanwhile designate a bankruptcy custodian.

The post of a bankruptcy custodian may be assumed by a liquidation group comprised of personnel from relevant departments and organs or by such lawfully established social intermediary agencies as a law firm, an accounting firm, a bankruptcy liquidation firm and etc..

The people's court may, in light of the real status of a debtor and upon consulting the opinions of the relevant social intermediary agencies, designate the relevant personnel who have a good command of special knowledge and have obtained the practice qualification as a bankruptcy custodian.

Under any of the following circumstances, one may not assume the post of bankruptcy custodian:
(1) Having a record of criminal punishment for deliberate crime;
(2) Having been revoked of the relevant practice qualification certificate of related specialty;
(3) Having any interest with the case; or
(4) Any other circumstance under which the people's court deems it improper for him or her to act as a bankruptcy custodian.
Where an individual assumes the post of a bankruptcy custodian, he shall purchase the responsibility insurance for practice.

A bankruptcy custodian shall fulfill the following functions and duties:
(1) Taking over the asset, seals as well as the account books and documents of the debtor;
(2) Surveying the financial status of the debtor and formulating the financial statements;
(3) Determining the internal management of the debtor;
(4) Determining the daily expenditure and other necessary expenditures of the debtor;
(5) Determining, before the holding of the first meeting of creditors, whether to continue or terminate the debtor's business;
(6) Managing and disposing of the debtors' assets;
(7) Appearing in actions, arbitrations or any other legal procedures on behalf of the debtor;
(8) Suggesting the hold of creditors' meetings; and
(9) Fulfilling other functions and duties that the people's court believes it should perform.

In the case of any separate provision on the bankruptcy custodian's functions and duties in the present Law, it shall prevail.