Is it possible to establish a personal bankruptcy system?

category:Society click:304
 Is it possible to establish a personal bankruptcy system?


On October 31, Du Wanhua, deputy director of the Advisory Committee of the Supreme Peoples Court, pointed out that in order to maintain the scientific nature of the limited liability system of enterprise legal persons in China, to effectively promote the perfection of the market subject system characterized by natural persons, and from the perspective of thoroughly solving the difficulties of implementation, to safeguard the marriage and family system in China. For stability, China should establish a personal bankruptcy system.

On October 24, Zhou Qiang, President of the Supreme Peoples Court, made a report to the Peoples Court at the sixth meeting of the Standing Committee of the 13th National Peoples Congress on how to solve the problem of difficulty in execution, suggesting that the peoples court should promote the establishment of an individual bankruptcy system, improve the current bankruptcy law and smooth the exit path of impossibility of execution cases according to law.

High debt era calls for personal bankruptcy

In recent years, the implementation of the court in China has made outstanding achievements.

On October 31, Liu Guixiang, a full-time member of the Judicial Committee of the Supreme Court, said in an interview that from 2016 to now, the amount of real gold and silver in the pockets of the parties was nearly 4 trillion yuan, up by more than 50% compared with the previous three years. From the end of 2017 to the end of September 2018, the net realized capital reached about five hundred billion yuan.

However, there will always be cases of inability to execute. According to the general rules of the world, the cases of impossibility of execution belong to the commercial risk, legal risk and social risk that the parties should bear, not the result of the inadequate execution of the court, and need to be solved through institutional mechanisms such as personal bankruptcy and social assistance.

In our country, the court will terminate the execution procedure after strict examination in the case of impossibility of execution and bring it into the final case bank management. Once property is found, the execution must be resumed in time.

Li Shuguang, director of the Center for Bankruptcy Law and Enterprise Restructuring Research of China University of Political Science and Law, said that when there is no real property to be enforced, the execution of natural persons debt will be deadlocked, which can neither solve the demands of creditors nor give individual debtors a chance to come back.

In recent years, Chinas residents debts have increased significantly. According to the data of the Peoples Bank of China, by the end of the second quarter, the total amount of credit granted by bank cards was 13.98 trillion yuan, an increase of 6.40% annually compared with the previous quarter, and the balance of credit repaid by bank cards was 6.26 trillion yuan, an increase of 7.83% annually. Credit card overdue half a year total outstanding credit 75 billion 667 million yuan, an increase of 6.35%. Data show that in 2017, Chinas household leverage ratio has reached 48.6%.

Chen Xia-hong, a researcher at the Center for Bankruptcy Law and Corporate Restructuring of China University of Political Science and Law, told reporters that the proliferation of such terms as house slave, car slave and kanu means that our economic life will continue to run in high debt situations in the future. In this case, the adoption of personal bankruptcy law is of great significance for eliminating financial risks and restoring market credit mechanism.

Du Wanhua wrote in his article that he suggested that the Standing Committee of the National Peoples Congress (NPC) should immediately carry out research on the personal bankruptcy law and incorporate it into the states legislative plan in due time. He could also consider changing the enterprise bankruptcy law into the bankruptcy law when amending the enterprise bankruptcy law and taking into account the bankruptcy problems of individual bankruptcy, partnership and other non-corporate organizations. Enter the scope of bankruptcy law.

The amendment of the Enterprise Bankruptcy Law has been included in the second category of the legislative plan of the 13th National Peoples Congress, namely, the draft law which needs to be urgently worked out and submitted for consideration when conditions are ripe.

Chen Xiahong expressed optimism about the personal bankruptcy system when the Enterprise Bankruptcy Law was amended. Without the support of personal bankruptcy, the bankruptcy system will not go far. The Supreme Court and other relevant departments have recognized the importance.

Perfecting system to prevent borrowing from bankruptcy

Is it true that personal bankruptcy will become a means for debtors to evade debts?

With the continuous improvement of personal credit information system and the interconnection of financial systems, debt avoidance and debt avoidance will become more and more inevitable. Chen Xiahong said.

This fear may also be due to the fact that people are rather unfamiliar with the system of personal bankruptcy. The Bankruptcy Ordinance of Hong Kong stipulates that the period of bankruptcy is 4-5 years from the beginning of bankruptcy, and the German Bankruptcy Law stipulates a six-year examination period for the bankrupt debtor. After completing this procedure, bankrupt personnel can completely free the remaining debts.

During this period, the bankrupt generally has the right to retain the income that meets the basic living expenses. For example, in Hong Kong, the bankrupt can live in all his property for up to 12 months. After the expiration of the term, the bankrupt must withdraw and deliver it to the trustee, who will cash it in and pay off the debts. The bankrupt shall not engage in any high consumption behavior. When the credit consumption exceeds HK$100, he shall inform the other party of his bankruptcy status in advance.

In the United States, during the bankruptcy period, the bankrupt can not retain more than 15,000 dollars in real estate, no more than 2,400 dollars in automobiles and no more than 400 dollars in the unit price of necessities.

Li Shuguang believes that after the liquidation procedure is completed, the debtor will no longer repay the remaining liabilities. In order to prevent the abuse of the personal bankruptcy system and the possibility of natural persons avoiding and canceling debts, we should retain the recourse to the debtor for fraudulent transfer or concealment of property, as well as other taxes, fees and fines that should not be exempted. Another worry about the establishment of a personal bankruptcy system is that it puts too much pressure on the court. The vast majority of the millions of bankruptcy cases handled annually by the U.S. Bankruptcy Court are individual bankruptcy cases. Li Shuguang told the twenty-first Century economic news reporter. In 2017, there were only 9542 cases of bankruptcy of newly-collected enterprises in Chinese courts, and they were concentrated in a few economically developed areas. Now our judges in the bankruptcy court also hear ordinary civil and commercial cases. A judge of the bankruptcy court in Zhejiang Province told 21st century economic reporters, But the number of cases of bankruptcy has increased at present. If the system is smooth, the number of bankruptcy cases may increase dramatically. Source: twenty-first Century economic report editor: Li Cong _B11284

Li Shuguang believes that after the liquidation procedure is completed, the debtor will no longer repay the remaining liabilities. In order to prevent the abuse of the personal bankruptcy system and the possibility of natural persons avoiding and canceling debts, we should retain the recourse to the debtor for fraudulent transfer or concealment of property, as well as other taxes, fees and fines that should not be exempted.

Another worry about the establishment of a personal bankruptcy system is that it puts too much pressure on the court.

The vast majority of the millions of bankruptcy cases handled annually by the U.S. Bankruptcy Court are individual bankruptcy cases. Li Shuguang told the twenty-first Century economic news reporter.

In 2017, there were only 9542 cases of bankruptcy of newly-collected enterprises in Chinese courts, and they were concentrated in a few economically developed areas.

Now our judges in the bankruptcy court also hear ordinary civil and commercial cases. A judge of the bankruptcy court in Zhejiang Province told 21st century economic reporters, But the number of cases of bankruptcy has increased at present. If the system is smooth, the number of bankruptcy cases may increase dramatically.