A Study On The Legal System Of Bankruptcy In American Local Government

China’s local government debt crisis has aroused widespread concern in academic circles, this year there are many scholars called for the reference America legal system of local government bankruptcy, established a system of local government bankruptcy law in China. Although in the USA local government bankruptcy looks very ordinary, but to be established local bankruptcy law system of government is actually exists great hindrance in China. First, Chinese have no consciousness to bankrupt the government yet. Second, the current financial system can not adapt to the local government bankruptcy in our country. Third, the local government bankruptcy legal system is vacant. Therefore, in order to solve the current severe local government debt crisis, first of all need to improve local government bankruptcy consciousness, make the local government aware of the serious consequences of wanton borrowing; to promote the in-depth reform of the financial system, in order to meet the arrival of the bankruptcy system of local government; the last of China’s local government debt will lead to huge local government bankruptcy, so we need to save, learn from the successful experience of America, worked out with China’s the national legal system of local government provide solutions in the event of bankruptcy based on local government default.The first part of this paper from the America bankruptcy legislation premise of local government, analyses the scope of American local government, combined with the relationship between financial system and government USA reasons for local governments to bankruptcy are discussed.The second part introduce the development process of the whole USA local government bankruptcy legal system, and comments on the American bankruptcy code Chapter ninth-adjustment of debts of a municipality, analyze the deficiency of some provisions in the bankruptcy law. Hoping to inspire the design of our country’s bankruptcy legal system of local government.The third part of the advantages and disadvantages of the legal system America local government bankruptcy is analyzed, and the system is suitable for the introduction of our country, whether can bring solutions to China’s local government debt crisis.Finally, Comparison of American and China’s financial system, how to reform so as to meet the local government bankruptcy. Based on research on American bankruptcy legal system and China’s specific financial system, a series of suggestions on design are given to establish the legal framework of China’s local government bankruptcy. Therefore, this paper emphasizes on the advantages American local government bankruptcy legal system, but also to re design our bankruptcy legal system to avoid some of the drawbacks of local government. The focus is on how to use laws and regulations to regulate the way of financial system and the local government bankruptcy rules.