The Research Of Consumer Bankruptcy System

Under the condition of modern market economy, consumer credit is developing rapidly both in extent and depth. Economic cycle, social force majeure, banks'mal-management, consumers'poor money handling skills and fraud are the main risks faced by consumer credit. The expansion of consumer credit leads to the climbing of consumers'over-indebtedness. Consumer bankruptcy system should be the critical and the last protection line to be constructed.The paper is to utilize the legal research methods such as value analysis method, positive method, legal economics method and legal sociology method. With the help of these methods, the paper analyzes the relations between consumer credit and consumer bankruptcy, consumer credit and consumer bankruptcy legislation, discusses the risk faced by consumer credit in China, researches into the relations between consumer credit and other social phenomena such as social security etc., puts up forward some suggestions about the location of legislation goal, the choice of legislation model, the settlement of bankruptcy procedure and the construction of concrete system for China's consumer bankruptcy .Consumer bankruptcy system is an exit mechanism for consumers in consumer credit economy. Although there are some obstacles, it is necessary and feasible to construct consumer bankruptcy system in China.As the legal means to realize the legal relations between the over-indebtedness debtor and all his creditors, consumer bankruptcy is both to realize an equal distribution among creditors and provide fair protection with debtors. China's consumer bankruptcy can realize the protection of consumer's subsistence right from low to high level. Consumer bankruptcy's legislation mode can be divided into open-credit-market mode and controlled-credit-economy mode. China's credit system and property registration system is not perfect. Escaping debt is still the society's focus. China's consumer bankruptcy legislation is prone to controlled-credit-market mode.Compared with enterprise bankruptcy and natural personal bankruptcy, consumer bankruptcy is consisted with enterprise bankruptcy and natural person bankruptcy in principle, system and procedure. On the other hand, there are differences between them. The differences should be the focus. Simple procedure is helpful to improve efficiency of bankruptcy cases, reduce the work pressure of courts. Reorganization procedure helps to balance the benefits between the debtor and his creditors. Debtor education is the unique system in consumer bankruptcy. The nuclear systems of consumer bankruptcy can be divided into risk sharing mechanism, risk security mechanism, risk prevention mechanism, moral hazard restraining mechanism etc. according to their functions. Bankruptcy discharge system realizes the allocation of credit risk to creditors. Exemption system safeguards the debtor's basic life after bankruptcy. Bankruptcy disqualification system restrains the debtor from abusing bankruptcy system. Debtors'education system helps the debtor reentry into the market system after the ending of bankruptcy procedure.