The Research On The Legal Regulation Of Personal Bankruptcy Fraud

In March 2021,Shenzhen took the first step in China’s attempt to legislate personal bankruptcy.The "Shenzhen Special Economic Zone Personal Bankruptcy Regulations" were born,and this system mainly aims to relieve honest and unfortunate debtors from their debts through a statutory process,allowing them to obtain economic rebirth.This easily leads to moral risks for debtors,and one of the values of this system is to incentivize good debtors while malicious debtors can easily take advantage of the personal bankruptcy system for fraudulent debt evasion.Therefore,personal bankruptcy fraud is a risk that must be prevented and controlled in the design and operation of the personal bankruptcy system.In view of this,it is particularly important to establish effective legal regulations for personal bankruptcy fraud.This article conducts research based on the concept of personal bankruptcy fraud,its constitutive elements,and manifestations.It combines the practical experience and empirical research of the personal bankruptcy system in the legislative pilot work in Shenzhen and Zhejiang,and conducts a systematic analysis.It reveals the problems existing in the current stage of China’s legal regulations on personal bankruptcy fraud in three different stages of the bankruptcy process: before the bankruptcy process starts,after the bankruptcy process starts,and after the bankruptcy process ends.It also learns from the legislative experience of relevant foreign countries regarding these problems and proposes corresponding ideas for improving the system.That is,before the personal bankruptcy process starts,by restricting the access to personal bankruptcy applications and establishing a sound personal credit system,the threshold for application can be raised to avoid the risk of dishonest debtors entering the personal bankruptcy process.After smoothly entering the personal bankruptcy process,strict exemption systems and reasonable regulations on free property can be used to strictly control the debtor’s behavior.Even if the personal bankruptcy process ends smoothly,there should be a comprehensive personal bankruptcy revocation system and a mechanism for pursuing civil liability to severely crack down on fraudulent behavior by debtors,making the personal bankruptcy system a tool that can ensure effective repayment for creditors and prevent malicious debt evasion by debtors.