Research On The China’s Individual Bankruptcy System

The bankruptcy system is a natural system in a market economy,but China has only established a corporate bankruptcy system,lacking the important link of a personal bankruptcy system.With the dramatic increase in commercial risks in the market,once individual businesses and other individual economies encounter major changes such as investment failure or force majeure,the unlimited joint and several liability borne by individuals will undoubtedly crush them and expose them to bankruptcy crisis.The enactment of personal bankruptcy law is conducive to helping debtors to restore confidence and relieve pressure,helping creditors to clear their claims as a whole,and thus maintaining the stability of the market and social order.This study firstly introduces the background significance of the study and the research ideas and methods,and summarises the main research contents of domestic and foreign scholars on personal bankruptcy.Secondly,it discusses the current situation and problems of personal bankruptcy in China,including supporting measures for personal bankruptcy,legislative exploration of personal bankruptcy in Shen Zhen City,pilot projects for centralised liquidation of personal debts and the estate administration system with Chinese characteristics,from which it summarises various useful experiences such as forming a chain of evidence for filing materials,a pre-bankruptcy filing counselling mechanism and a bankruptcy administration department,and analyses the problems of the existing system,such as the inadequate personal credit mechanism,the weakness of the anti-fraud regulation power and the high threshold for filing bankruptcy applications.The value orientation includes safeguarding development,achieving fairness and safety and efficiency,while the individual factors are analysed on a case-by-case basis according to the bankruptcy process,emphasizing the importance of institutional arrangements that focus on the individual,value dignity and individual choice.It also elaborates the comparative and articulated relationship between personal bankruptcy and civil litigation enforcement system and the division of functions between government and court on personal bankruptcy.It then reviews the legislative reforms of personal insolvency in the UK and the US,focusing on the latest personal insolvency procedure(statutory debt repayment scheme)adopted in 2022 in the UK,comparing it horizontally with the three previous insolvency procedures,and conducting a practical analysis of the number of various types of personal insolvency cases in the UK from 1984 to March 2022,summarising the differentiated choices of individuals in the UK towards different insolvency procedures.The optimisation path of the Personal Bankruptcy Reform Act of September 2022 in the United States is analysed in terms of specific provisions,and the characteristics of the reform in various countries and the inspiration for constructing a personal bankruptcy system in China are summarised,which should maintain a summary of legal experience,focus on assistance at the spiritual level,give play to the role of personal credit and promote the interaction between the judiciary and the administration.Finally,it puts forward targeted recommendations in various dimensions,including personal credit mechanism,anti-fraud mechanism of personal bankruptcy,scope of exempt property classification,personal bankruptcy acceptance system,personal bankruptcy exemption system,limitation of personal bankruptcy rights,and coordination mechanism between judiciary and administration.In summary,this study compares the latest reform experience of the UK and US regarding personal bankruptcy,and takes into account the latest regulations and trial implementation of personal bankruptcy and personal bankruptcy-like bankruptcy in China.Under the framework of unification of theory and practice,it proposes the construction of China’s personal bankruptcy system with respect to personal bankruptcy entities,procedures and the interface with other systems,aiming to provide theoretical support for the construction of a unified personal bankruptcy system in China.