On The Predicament And The Way Out Of The Bankruptcy Settlement System In China

Bankruptcy reconciliation program is an important part of the bankruptcyproceedings, when event of insolvency of the debtor reason bankruptcy proceedings,in order to avoid the bankruptcy of the debtor, under the auspices of the court by thedebtor and creditors reached a settlement agreement to terminate the bankruptcyprocess, the parties in the implementation of the settlement agreement, waiver oradjustment of the debtor’s debt so that creditors the creditor may maximize settled,and thus the end of the bankruptcy proceedings of a legal system. In theory,bankruptcy reconciliation program to make up for the deficiencies of the liquidationproceedings, Have the reconstruction, the debtor creditor maximize repayment andthe role of social unrest. However, in our bankruptcy judicial practice, the use ofbankruptcy reconciliation procedures to deal with the number of cases far less thanthe restructuring and liquidation proceedings, That actually bankrupt reconciliationprogram is to be set aside by the state, The research is still in bankruptcy law researchareas are left out of the party. In view of this, the paper tries to discuss a number ofissues exist in our bankruptcy settlement through the analysis of the bankruptcysettlement system, Improvement of the bankruptcy settlement system targetedrecommendations. There are about25,000words in this article, and discussed in fourparts:Part Ⅰ: Description the bankruptcy settlement system overview. Define theconcept of reconciliation and the nature of the bankruptcy, and pointed out that thebankruptcy proceedings of reconciliation contractual nature, the status and function ofdiscourse bankruptcy reconciliation program, pointed out its reconstruction with thecreditors of the debtor to maximize repayment function to clear the bankruptcyreconciliation program throughout the bankruptcy proceeding sposition. This sectionalso points bankruptcy reconciliation procedures in accordance with the order of thebankruptcy settlement program start bankruptcy settlement agreement reached, theend of the bankruptcy reconciliation program in three stages to analyze the conduct of the bankruptcy reconciliation program structure.Part Ⅱ: analysis of a number of problems exist in China’s bankruptcy settlementsystem, that part of the problems on the bankruptcy settlement system in China,focusing from six aspects are discussed:1、Interference in private rights of autonomy and legal dilemma.2、Debtor facingbankruptcy settlement. Commence bankruptcy proceedings, the bankruptcyliquidation reasons for bankruptcy reconciliation reason the same legislation as thestart of the bankruptcy reconciliation program set too high a threshold, the impact ofthe debtor through the bankruptcy reconciliation program to rebuild hope; subject ofan application is limited to the debtor, resulting inreconciliation of the applicable rateis greatly reduced, and also to some extent affected the interests of the creditors;range of controversial issues of reconciliation creditor and a third party to providefinancial assurance whether the reconciliation claims;3、Guarantor’s protection of theinterests. There are three views:(1) recover;(2) does not allow recovery;(3) allrecover.4、Protection of creditors’ rights issues. Practice, how to make the settlementagreement reached will not be easily revoked, the contents of the settlementagreement to fulfill and to what extent cannot be easily restored in the bankruptcyproceedings; execution of the settlement agreement the duration of the problem is notclearly defined, and whether it will lead to a debtor to delay performance.5、Thebankruptcy settlement program oversight main missing issues. Bankruptcyreconciliation program running in the oversight problem is not a practical solution.6、Bankruptcy reconciliation procedures in court facing problems. Terms of reference ofthe Court too weakened, led to the uncertainty of the program to enhance thebankruptcy settlement procedures exist to be manipulated, and the potential for abuse.Part Ⅲ: The reference of extraterritorial related bankruptcy settlement systemreference. This section introduces the extraterritorial court settlement provisions torelax the bankrupt of reconciliation apply for the main provisions are forced to fulfillthe rights given to the bankruptcy settlement agreement, creditors lowest settled rateprovisions, regulations limit the debtor, and oversight mechanisms for our referenceother bankrupt reconciliation procedures to improve their own existing systemspecified in the direction. Part Ⅳ: The way out of the bankruptcy settlement system in China. Summarizedthis part of the issues raised in the second part of this paper, propose appropriatecountermeasures.Finally, the article shortcomings and future research directions are described.