On Common Benefits Debt System

Bankruptcy is a legal phenomenon that appears inevitably when commodity economyis growth to a certain stage,and it also can be said that the bankruptcy law system growswith the development of commodity economy. Bankruptcy law is a dynamic law, which hasmuch connection with country’s politics, economy, culture and other contents. The concretesystem of Bankruptcy Law also transforms with the social development. In the wake of thedevelopment of market economy, the increasing number of market main body andbankruptcy cases in market transactions, the " Enterprise Bankruptcy Law (TrialImplementation)" can not meet the market demand and efficiently solve a series ofproblems arising in bankruptcy proceedings. In this case, the new "Enterprise BankruptcyLaw " is produced, which adds many new legal systems, such as bankruptcy administratorsystem, bankruptcy reorganization system, common benefits debt system and so on.Compared to a heated discussion of bankruptcy administrator system and bankruptcyreorganization system after the new law enacted, academic circles pay less attention tocommon benefits debt system; still, it cannot erase the distinguish position of commonbenefits debt system in the whole system of bankruptcy law. The new law not onlyestablishes the position of common benefits debt system, but also clearly sets the specificcontent and debt settlement rules of common benefits debt. This paper is conducted to studythe specific situations of the common benefits debt system based on the new bankruptcylaw.There is two sections in this paper: the introduction section and the body section. Thebody section contains four parts.The first part describes the historical evolution of common benefits debt system, andintroduces two legislative system of common benefits debt system in the world: the mergercommon benefits debt system and the respective common benefits debt system. Commonbenefits debt system has its own legal system characteristics, whose concept is different from bankruptcy expenses, labor claims, and exemption right. The new bankruptcy lawspecifically sets articles to describe common benefits debt, making it independent from thebankruptcy expenses articles, which shows to us where its function and value are.The second part mainly analyzes the six main situations of common benefits debtwhich are described in the bankruptcy law, giving a profound knowledge and understandingto the provisions.The third and fourth parts are the main points of the whole paper.The third part givesan analysis on the theoretical problem in common benefits debt legislation and practicalproblem in practical operation and describes the author’s attitudes when facing theseproblems. It mainly involves the definition of the scope of common benefits debt in theory,the payment body of common benefits debt, the legal consequences when the debtor’sproperty is insufficient to settle the common benefits debt. In practical cases, it mainly dealswith some problems such as the overlapping of bankruptcy expenses and common benefitsdebt, whether the debt of the breach of contracts that has been emerged before the beginningof the bankruptcy procedure belongs to common benefits debt or not.The fourth part offers some legal proposals that may be amended or altered bylegislation. The proposals emphasize on the scope of the debt; determining the quality ofdebt when the opposite party initiative to fulfill the contract;deleting common benefits debtowing to bankruptcy administrator’s duties; necessary to set the other terms of commonbenefits debt. Clearly determining which part of property can pay off the debt and whetherall of the debtor’s property can be used to pay off common benefits debt,There is nonecessary to report common benefits debt to bankruptcy administrator.But the paymentprocedure must be completed,In order to maintain the interests of creditors,the payment ofcommon benefits debt should be supervised.