Using Of Preservation System Before Acceptance Of Bankruptcy Case

In a Socialist market economy, bankruptcy is inevitable. Compared to common civil cases, it takes between 15 and 37 business days for a Court to deal with bankruptcy cases from application to completion, during which bankrupt property is still under control of the debtor. The debtor may be motivated to pay off some creditors to harm creditors' interest through fraud litigation, preemptive performing and destroying account book. Also, employees and creditors get very emotional during bankruptcy. Some of them may try to loot company equipment and products or even smash things which lead to loss of bankruptcy property.Under our present legal system, interim measures are all initiated after acceptance of bankruptcy cases which means we can do nothing between case application and acceptance. Current bankruptcy law emphasizes the Relief instead of Prevention and takes too long to enforce due to the need of a court ruling. The process is further slowed by the need for communications between multiple courts and departments which is sometimes out of control So it gives impacts on bankruptcy prepayment rate and saving debtors and maintain social stability.They key trend to bankruptcy case is protecting the bankrupt property. It is very important to establish the preservation system before case acceptance.The introduction mainly talks about the research purposes, scope and actuality in China and abroad. The theoretical significance, practical value and research methods of the essay are also explored in an attempt to rationalize the establishment of the preservation system before bankruptcy case acceptance. The introduction also talks about the mail logics for this essay.In Part one of this essay, two cases are introduced through empirical methods. “Changshu Kehong series enterprise bankruptcy reorganization case”, which caused a sensation throughout the country, took steps before the acceptance. Instead, “Fujian printing industry giant Fuzhou Qianfan bankruptcy” did nothing. Legal issues are brought out by comparing these two cases.In Part two of this essay, I elaborate on the theoretical basis of establishing a preservation system before the acceptance of bankruptcy cases in China. I also indicate regulations of our present bankruptcy law, target value of establishing bankruptcy law, bankruptcy law's differences from bankruptcy revocation system and preservation system for civil actions, rationality of establishing the preservation system before the acceptance of bankruptcy cases. Then I come to the conclusion that the key to preservation system is to protect the integrity of creditors' property.In Part three of this essay, I study the legislation experience of Automatic Stay in America and reversed production in Japan through comparative jurisprudence methods.In Part four of this essay, I give pertinent suggestions which are based on the analysis in Part two and Part three of establishing a preservation system before the acceptance of bankruptcy case.In the last part of this essay, it comes to the conclusion.