Research On The Bankruptcy Capacity Of Natural Person

Generated from and the history and the evolution of the bankruptcy system, the initial bankruptcy law is only applicable to a natural person. The applicable scope was extended to the corporations and enterprises after the emergence of the concept of corporate insolvency law when it comes to the nineteenth century. According to China's current bankruptcy law, only corporate juridical persons have the capacity of bankruptcy, natural persons can not be bankrupted. There is no established bankruptcy system in China, because of the skepticism to the natural person's ability for the bankruptcy. This ability for the bankruptcy of natural persons is to be argued in this paper. And the Bankruptcy Legislation around the world is to be compared and studied, combined with our national conditions on the bankruptcy of natural persons. And this paper is to analyze the feasibility of establishing natural insolvency regime, the physical system, and the procedures design.This paper is divided into the following sections:Part I: The overview of bankruptcy capacity. First, the concept of the natural person bankruptcy will be clarified, and then the history and evolution of natural person bankruptcy will be reviewed. The legislations on Bankruptcy will be compared from the perspectives of vertical and horizontal. China's legislative options are put forward eventually.Part II: The necessity and feasibility to give a natural person the bankruptcy capacity. China's current bankruptcy law and related legislation deny the bankruptcy capacity of natural persons, and most of the scholars are opposed to it. Their opinion is that the legal environment in China is still not good enough; the related systems of insolvency of natural persons such as personal property registration system, personal credit system and the social security system have not been established and the like.This paper will refute these views in this part, using the theories of civil law and bankruptcy law. Then use the legal system of China's economic environment and current development environment to provide support for the bankruptcy capacity of natural persons. After clarifying the need to give natural persons the bankruptcy capacity, this paper will offer some demonstrations of the feasibility for the construction of the personal bankruptcy system.Part III: The Construction of Personal Bankruptcy System. The purpose of studying the bankruptcy capacity of natural persons is to establish the bankruptcy system foundation in theory. This part will propose some recommendations for the establishment of the personal bankruptcy system in China. The recommendations are based on the feasibility study above-mentioned. And they are mainly from the reasons for bankruptcy, free property system, bankruptcy exemption system, bankruptcy loss of rights and recovery system. The part is following the logical path like this: the theoretical overview first, then more studies, and finally a logical structure of the legislative ideas to be discussed separately.