The Research Of Secured Creditorss And Labor Rightss Sequence In Bankruptcy Law

When a company get into Bankrupcy liquidation, the Claim in bankruptcy is usuallyinsufficient to satisfy all claims against the bankrupt, or even the first priority claim inbankruptcy can not get fully paid. In this case, the sequence ofClaim in bankruptcys willdecide the repayment of the creditor’s claims, and it will inevitably lead to competition in theclaims. The conflict between Secured creditorss and Labor rightss, which is the mostimportant claims, is most intense, this is also the focus of this study.Ever since the first Chinese bankruptcy law was invented, the debate againist thesequence between the Secured creditorss and the Labor rightss has not ceased, While draftingthe present bankruptcy law, the first draft support that the Secured creditorss is prior of Laborrightss, but the second draft completely subvert the first draft and advocates that Labor rightssis prior of Secured creditorss, which also shows the intense conflict. Considering ourfundamental reality of Chinese society, the author forward his opinion that in general,according to the principle of property priority, Secured creditorss of course is prior of Laborrightss, but while the repayment for maintaining the survival of enterprise workers cant begiven due repayment. The limit wage claims should be prior of Secured creditorss and getrepaid of guarantee property.This paper will set forth from four main parts to prove the point according to the them of"The research of Secured creditorss and Labor rightss sequence in bankruptcy law".The first part is the introduction. We will focus on the background of this topic, researchmethods and meaning, this paper will start from the bankruptcy of the Chongqing Kang ErweiPharmaceutical Co., Ltd. We will state that which claims should get first repayment when theClaim in bankruptcy is insufficient to pay both Secured creditorss and Labor rightss, and thensimply introduce the research methods of this paper and the meaning of this research topic.The second part will describe the basic theory of the sequence of bankruptcy repaymentof different claims. First we will introduce the three target modes of bankruptcy law: propertyproteting mode, debt relief mode and standard mode, Through the evolution of the threemodes, we will interpret that the protection center of bankruptcy law have changed fromprotecting the interests of creditors to protecting enterprise’s employees. Then we will discussthe general principles of the bankruptcy liquidation priority. The third part introduces the present legislation and debate about the repaymentsequence of claims. The "Bankruptcy Law (Trial)" and the State Council administrativeregulations and relevant judicial explain have made provision about Secured creditorss andLabor rightss, the current bankruptcy law has obvious changes comparing to the oldbankruptcy law. Also this paper will Introduce the different views about the debate betweenSecured creditorss and Labor rightss and put forward some personal views.The fourth part is the focus of this research: the legislation proposals about Securedcreditorss and Labor rightss repayment sequence. The author will put forward some ownoptions, like mentioned above, and explain the legal basis and necessity of Secured creditorssshould get prior repayment. Also explains the reason and function of some specific Laborrightss should be prior to Secured creditorss.The fifth part is the conclusion. This part is the full text of a brief summary, pointing outthat the essence of the conflict of the secured debt and labor claims in the currentcircumstances, whether it is full priority secured claims or priority labor claims are wrongonce again shows personal views.