Bankruptcy Exemption System

The study on the bankruptcy discharge system as an important part of the natural person bankruptcy law began in recent years. The preface gives a brief account of the present study on the bankruptcy discharge system. The author believes that further study on the discharge system is necessary and we should combine the study on the discharge system with the individual credit conditions.The fist part of the article is a brief account of the discharge system. The author thinks that the core of the bankruptcy law was to regulate the relation between creditors and debtors before the discharge system emerged. After the discharge system came into been, the core moved to keep the balance between the creditors and debtors. Then it inclined to protect debtors, it is the discharge system that helped the bankruptcy law to approach democracy, freedom, and liberty. After a research about the discharge system's legislative values, the author believes that in the macroscopic sphere these values include to distribute financial risks rationally and to be advantageous in the functioning of the individual credit system. In the microscope sphere these values includes to ensure the creditors' right, to encourage the debtors' paying off, to ensure debtors' life in future and to be in keep with the demands of the society. After a research of the legal principles of the discharge system, the author provides it with the proper reasons to exist. Because the discharge system is the core of the bankruptcy law for natural person and in keep with the need of the society, China has to accept it when she satisfies certain conditions. However, China has no individual credit system, so it is not the right lime to accept the discharge system in China.The second part of the article is the legislative advice for the discharge system. If China has the individual credit system and plan the discharge system well, it will improve national economy and the society. So, on one hand we should build our individual credit system, on the other hand we can not give up the effort to study the specific regulations of the discharge system.The third part of the article is the relations between the present condition of individual credit and the discharge system. After a comparison of the definition of credit in economics, finance and law, the author believes that the definition of credit in civil law has no standard which will help people to assess the individual credit, so we can use some understandings of the individual credit in economics and finance: credit comes from transaction and will develop with the transaction development. After analyze the individual credit conditions in China, the author thinks that although we have a long history of the credit, after the reform and opening to the outside world, credit became a serious problem in China. In China, few people pay attention to credit. We lack in records about individual credit, in specialized individual credit assessment system, in mature market and in relative regulations and law. Under such circumstances, China cannot accept the bankruptcy discharge system. The discharge system can only apply in those unlucky and honest debtors, so the first and the most important task for those countries that accept discharge system is to have an integrated individual credit system and control the conditions of the individual credit. In this way, we can understand who unlucky and honest debtors are and who the liars are. If China accepts the discharge system without the individual credit system, many swindlers will use it to get illegal benefits. Moreover, it will do great harm to the society and economy. We should build the individual credit assessment system, the individual credit registration regulations, the individual credit assessment system, the individual credit risks warning system, the individual credit management system and the individual credit risks transferring system.The conclusion of the article is: we cannot accept the bankruptcy discharge system before the individual credit system is built, but...