The Interests Of Creditors In The Bankruptcy Liquidation Balance

Benefits balance between a creditor and debtor and that between creditors inbankruptcy proceedings has been all the time the main issue of bankruptcy lawstudy. To balance the benefits among subjects related to bankruptcy, keepbankruptcy proceedings in order and realize bankruptcy claims to the maximumalso has been one of the legislative intents of bankruptcy law. Bankruptcy law hasstipulated the settlement order for bankruptcy claims in bankruptcy proceedingsand has determined the order of various claims to be settled, as shows variouscreditors’ benefits may receive different sorts of protection.This paper has, from a theoretical, historical and comparative law point ofview, analyzed provisions under the current Enterprise Bankruptcy Law onsettlement order for bankruptcy claims in bankruptcy proceedings. The paper hasanalyzed in detail the settlement order for bankruptcy costs, common benefitsdebt，labor claims, taxation claims and general claims, as well as benefits balancein such an order. Through the paper, the writer has declared her/his views on thecurrent regulations and also provided certain suggestions. The writer suggests thatsettlement order for bankruptcy claims should be established based oncomprehensive elements, including creditors’ capabilities of prediction andendurance for enterprise bankruptcy, social stability, social habits, traditionalconcepts, income gap and degrees at which various beneficiaries have beenrecognized and protected.In accordance with the rational provisions under bankruptcy law thatbankruptcy costs and common benefits debts should be repaid with priority andthe key protection of labor claims, the writer further suggests as follows:(1)to limit bankruptcy costs and optimize bankruptcy manager mechanism,regulate expenses on bankruptcy costs and common benefits debts to getmore bankruptcy property to repay debts,(2)to list labor claims as claim with priority which should be repaid beforelegal cost and common benefits debts, (3)to better the social security system, set out strict wage payment system andensure a timely payment of wages and social insurance,(4)to optimize bankruptcy manager mechanism, reduce damages to generalcreditors caused by bankruptcy managers’ poor management.The writer insists as well that legislation should take it into consideration thatthere should be subsections among common creditors. Those natural personcreditors with little capabilities against bankruptcy risks shall have priorities to gettheir debts repaid. While taxations levied on bankruptcy enterprises should berepaid fairly with other claims or even later than common claims so as toguarantee wealth to be returned to people.