On The Protection Of The Interests Of The Creditors In The Bankruptcy Law Reforming The System

Reorganization is a reform to the traditional bankruptcy system that leads the debtor to bebankrupt. This law reform is pushed by the inherent limitation of the traditional legal purposeof the bankruptcy law.The traditional legal purpose of the bankruptcy law is to make the creditors discharged justly byusing the existent assets of the debtors;however, what the creditors get from the liquidationprocedure is very limited. In addition, with the development of the market economy, therelation among each economic organization is closer, thus, the influence of the companybankruptcy is broader. Because it is unable to avoid the bankruptcy of the company, theeconomic function of the traditional bankruptcy law is far behind the development demand ofthe social economy.The reorganization system can balance the interests of each party, exempt the company whichassets cannot cover its debts from the bankruptcy, and avoid the social turbulence by thebankrupt company. The reorganization system is paid much attention by each country andbecome the hotspot in the reform of the bankruptcy law.However, the reorganization system shall not only protect the debtors and bankrupt companywithout balancing the interests of the creditors. Without the protection to the creditors, thereorganization system will become the tool for the debtors to get away from the debts. Then thetransaction safety of the whole society will be disturbed and the creditors have to take the costsand risks of the companies go into the bankruptcy. Especially in China, the reorganization isinclined to become the tool of protecting the state-owned enterprises. Thus, the writer herediscusses how to protect the interests of the creditors from the aspects of lawmaking idea,concerned organizations, and the execution principles.This essay is divided to four parts: the first part, the first part gives the definition of thereorganization, states its development procedure and the theory background, points out thenecessity and feasibility and the importance of the reorganization. The second part discussesthe conflict of the reorganization system on the protection of the interests of the creditors anddebtors, and the harm made by such conflict in China. The third part analyzes the lawmakingrules for the reorganization system from the aspect of the protection on the interests of thecreditors. The forth part, combining our country's reality, suggests that the problems we shallpay much attention to during our bankruptcy law-making procedure.