Preliminary Study On Personal Bankruptcy System In China

"The Bankruptcy Law of the People's Republic of China" were passed on August the 27th 2006 by our nation's legislature and will be carried into effect on June the 1st 2007. This law is symbolic in the process of our market-economic system reform, which not only establishes the legal system of the step-out of the corporation, but also prescribes the process of the corporation bankruptcy. It plays an important role in discharging debt and creditor's rights impartially, protecting the legitimate interest of the obligee and the obligor and also in safeguarding the normal order of the socialist market-economic system. In the meanwhile, we must point out that the law is mainly applicable for the corporation body instead of the personal bankruptcy.The bankruptcy rules originated from the Cessio Bonorum in the Roman Law. The personal bankruptcy, as the origin of the bankruptcy law, has run through the whole development of the bankruptcy law. The bankruptcy law has the corporation form soon after the system of the legal turned out. At present, quite a few of westen countries have admitted the personal bankruptcy. Therefore, with the universalization of personal consumer credit and the popularity of the personal business intercourses in our country, it is quite necessary to add the personal bankruptcy into the legal system.In our country's judicial practice, researches have been made on the bankruptcy and debt of the private corporations and specific solutions have been made out in other forms except the form of law. The legislative of bankruptcy in all the countries of the world have covered the bankruptcy of natural person in its application, no matter it adopts the corporation bankruptcy theory or the ordernary bankruptcy theory. Hence, with the development of the open policy and the deepening of the economic internationalization, many problems will arise if the system of the natural personal bankruptcy fail to be set up.Building the personal bankruptcy need many researches upon the system of free-set property, the system of non-responsibility bankruptcy, the system ofpersonality bankruptcy, the system of bankruptcy compromise, the simplification of the proceeding of bankruptcy, and at the same time the establishment of the corresponding guaranteed system.In the theoretical circle of our country, there exists a considerable debate over the implementation of the personal bankruptcy. The author holds that the problem of personal insolency can't be solved fairly and orderly in the market system without the personal bankruptcy, under the circumstances that the market-economy has been established and the system of preserving the good and eliminating the bad has formed. Based on the present situation that our market economy is not so developed and the gap between the city and the country is still very large, we could try to put the personal bankruptcy system into use in the developed areas before the conditions permit to put it into wide applications.