Affected by the continuing COVID-19 epidemic and the transformation of the economic development structure, the overall slow-down of economic growth in China has increased the possibility of late payment or bad debts by the business counterparty. Especially, if the business and financial condition of a business counterparty continues to deteriorate to a level close to bankruptcy, it is necessary and critical to consider not only how to collect and protect the creditor's rights as much as possible, but also the best approach to adopt when considering the potential bankruptcy proceedings.