The Study On The Negative Influence Of Lawyers’ Involving In Corporate Debt Litigation

With the enactment of the "Law of the People’s Republic of China on Lawyers" in 1996,the lawyers industry begins to be reformed,and couples with the market gradually. The lawyers industry has slowly gone on the right track and brought huge output on society. The current theoretical studies on the lawyer law are mostly intended to macro research, and no matter which one aspect of the lawyers industry is studied, the research always expanded on affirming lawyers’positive impact to the rule of law. However,the observation of a industry must be comprehensive, "Where there is sunlight, there is shadow". Nowadays, with the flourish and development of the lawyers industry, "shadows" is also getting emerge. The lawyers industry should have been to optimize the allocation of social resources and save transaction costs.However, there are many behaviors of extortion and refusal of cooperation in reality,which increase transaction costs.The paper focuses on the negative influence brought by the lawyers on society.And by selectting the specific context of corporate debt litigation,it is to investigate the negative social effects produced by the lawyers.Corporate evading debts behavior,which is the dishonesty behavior,has became phenomenal issues in the market’s economic development. In the face of kinds of evading debt companies and evading debts methods existing in the market, more and more corporate debts disputes are sued to court,but the judicial relief’s effect is not satisfactory. Although there are clear facts and evidences in a large number of corporate debt disputes,it is always difficult to recover debt for creditors. In this process, from the "pay back the money, right and proper" to "difficult to recover debt", lawyers have produced some negative effects for corporate debt litigation. The negative effect will be amplified furtherly to society and the market and form a series of chain reactions. The creditor’s rights especially the contract creditor’s rights,is one of the most important wealth in the market, its importance is self-evident.. This paper proposes to use criminal responsibility to penalties and sanctions evading debt behaviors to protect the interests of creditors and maintain the good market credit and economic development.By interviewing the senior business lawyers and the commercial referees judge,the lawyers’"hidden rules" in corporate debt litigation is summed up to pave the way for later theoretical analysis.The main purpose of lawyers’involving in corporate debt litigation is to achieve the optimal allocation of scarce resources and achieve the best use of the expertise and resources. In addition, it can improve litigation efficiency and reduce litigation costs.However,if the debtor always reap the benefits from the corporate debt litigation,people borrowing money will be more and more,but people returning money will be less and less. Debtors would like to participate in the litigation so that their evading debts behavior could obtain legal exports. This phenomenon may generate perverse incentives in the judicial process and convey society and market error signal to produce opportunistic litigation,companies lack of credit,social crisis of confidence and reduce the efficiency of credit markets and so on.Then the strategies about eliminate the negative impact of lawyers’involving in corporate debt litigation are put forward. By analyzing the costs and benefits of evading debts behavior,it is demonstrated that the current legislation is favorable to the debtor, the benefits of evading debts behavior is far outweigh to the costs it may pay. On the basis,the idea about introducing criminal responsibility in the field of creditor protection is put forward.And the legitimacy of criminal law involving in creditor protection is verified.The Legislative proposals on criminal law protecting creditor’s rights are put forward.