A Study On The System Of Bankruptcy And Reconciliation And The Protection Of Creditors

Bankruptcy is a concomitant social phenomenon of the free market evolution and an inevitable outcome under the market economy competition. Bankruptcy reconciliation system as well as bankruptcy liquidation and bankruptcy recombination is known as the three modern bankruptcy systems and its legislation aims to not only protect the interests of creditors but prevent enterprises from bankruptcy liquidation. In practice, however, some enterprises that are on the verge of insolvency tend to solve the disputes between the debtors and their creditors through bankruptcy liquidation and recombination when the performance periods expire, so bankruptcy reconciliation system fails to play its presupposed function at the beginning of its legislation. Combined with some related cases, this thesis tries to seek the reasons of the low application of bankruptcy reconciliation system that has come into being to protect debtors and their creditors’ interests. Also, the thesis will find out the existing defects of bankruptcy reconciliation system from the following four aspects——the prerequisite to bankruptcy reconciliation system, the protection of creditors’ interests, the supervision of bankruptcy reconciliation system and the court’s functions as well as the transition of the bankruptcy system to put forward some measures and methods to complete bankruptcy reconciliation system and play its function better through the analyses of the above mentioned defects.