The Construction Of Out-of-court Liquidation Mechanism Of Personal Debt In China

With the development of economy and the changes in residents’ consumption concepts,the overburden of personal debt has become a serious problem in our country.Due to the lack of individual bankruptcy system,many cases of inability to enforce the law cannot be completely withdrawn from the court for a long time.The debtor cannot be relieved.In order to deepen the supply-side structural reform and promote high-quality economic development,the state is promoting the establishment of individual bankruptcy system.Courts in Taizhou and Wenzhou have begun a pilot project of personal debt cleanup.Personal debt liquidation includes not only debt liquidation in court,but also debt liquidation out of the court.Studying the liquidation of out-of-court debt is of great significance at the moment.It can not only provide a new path for the liquidation of personal debt,but also solve the problems caused by the lack of individual bankruptcy system in our country to a certain extent.It can also lay the foundation for the establishment of a perfect individual bankruptcy system in our country in the future.This paper is divided into four parts.The first part mainly defines the concept of outof-court liquidation system,analyzes its definition,characteristics and functions,and discusses the concept of the legislation of the out-of-court liquidation mechanism of personal debt all over the world.The second part is divided into three sections.firstly,it analyzes the current ways to deal with the cases of inability to execute personal debt in our country,and points out that the existing system,that is,participating in the distribution system and ending this execution system,cannot provide a complete exit,resulting in a large backlog of cases and the legendary difficulty in enforcement.the solution of these problems needs a new way to provide export.Then it discusses the significance and feasibility of the construction of this system in our country,the establishment of out-ofcourt liquidation of personal debt can alleviate the personal debt crisis and create a good business environment.China’s relatively mature mediation system provides a reference for the construction of out-of-court liquidation mechanism in the aspects of organizational construction,personnel selection and appointment.The existing property investigation,punishment of those who break faith,judicial auction and participation in distribution system objectively have the embryonic form of personal bankruptcy,which provides the implementation conditions for the construction of out-of-court liquidation mechanism.The third part is the investigation of the relevant extraterritorial systems,selecting several representative countries and regions and summarizing the necessary conditions for the good operation of the out-of-court liquidation system by analyzing the implementation of the out-of-court liquidation mechanism of extraterritorial personal debts,that is,the cost for the debtor to obtain help should be lower,and the third-party institutions should have higher credibility.The debtor’s passivity does not hinder the application of the settlement plan and the legislative mode should choose the limited compulsory application and so on.The fourth chapter puts forward the idea of how to establish the out-of-court liquidation mechanism of personal debt in our country.It is mainly divided into three parts,the first is the positioning of the system,it is clear that the debtor who applies the system need to be honest and have a certain income in the future.Besides,his economic situation has the possibility of reconciliation;The out-of-court liquidation mechanism of personal debt in China provides services for debtors and creditors with reference to extra-territorial experience,which mainly include debt consultation and debt mediation.Then it discusses the procedural structure of the system.The author believes that in the lack of individual bankruptcy system,it is a more appropriate way to link up the out-of-court liquidation mechanism with enforcement.Then third-party institutions will provide solutions according to the debtor’s assets and liabilities combined with future income,draw up a settlement plan,promote the conclusion of a mediation agreement,and supervise the implementation of the future plan.In addition,it is essential to upgrade the corresponding supporting systems,like establishing a default mechanism to prevent debt evasion,and improving the relief system for creditors who are in difficulties due to the inability of the debtor to execute.Finally,construct third-party institutions that play an important role in the mechanism.In terms of organizational construction,we can learn from the establishment of the enterprise bankruptcy administrator,or give new functions to the mediation committee.Through the way that the state provides part of the funds and collects a small amount of funds from debtors and creditors based on performance,there are multiple ways to solve the problem of remuneration for services provided by third-party institutions.