Pros and cons of personal bankruptcy law, pros and cons of personal bankruptcy

Hello, there are pros and cons to personal bankruptcy, which are mainly reflected in the following aspects: Pros:1

Get rid of your debts and get a new lease of life. Personal bankruptcy can legally forgive most of the debts of the grinding group, giving people relief and a chance to live again. 2.

Protection of personal property. During the bankruptcy restructuring process, the court will set a period of property preservation, during which personal property will not be confiscated or sold by creditors. 3.

Rethink your finances. Personal bankruptcy gives people the opportunity to rethink their finances, avoid over-borrowing and improve their financial habits. Cons:

1.Impaired credit. Breaking an individual's blind orange production will seriously affect the individual's credit history, and it is difficult to borrow large amounts in the short term.

2.There is a loss in insolvency. If the individual's assets do not cover all debts, the individual will suffer a certain amount of asset shortfall loss in the event of bankruptcy.

3.Bankruptcy is cumbersome to file. The personal bankruptcy application process is complicated, requires a large number of documents to be submitted, and the process is relatively long, which can give people mental stress.

4.Poor social perception. Some people still have a perception that the bankrupt is incompetent or dishonest, which can have an emotional and social impact on the bankrupt.

In July 2019, 13 departments including the state announced the "Plan for Accelerating the Improvement of the Reform of the Withdrawal System of Market Entities", proposing to study the establishment of a personal bankruptcy system.

The so-called personal bankruptcy system, in layman's terms, refers to the process of applying for bankruptcy to the court and paying off the debt in accordance with legal procedures when the debtor does not have the ability to repay the money on time and cannot reconcile with the creditor.

Chen Xiahong, a researcher at the Bankruptcy Law and Enterprise Restructuring Research Center of China University of Political Science and Law, said that the personal bankruptcy system is essentially a relief and relief system for debtors, rescuing "honest but unfortunate" debtors from the quagmire of debts and giving them a chance to make a comeback, rather than letting them jump off buildings and commit suicide due to entrepreneurial failure.

The personal bankruptcy law refers to the legal norms that when all the assets of a natural person who is a debtor cannot pay off its debts due, the court shall declare it bankrupt in accordance with the law, liquidate and distribute its property, exempt its debts, and determine the rights and obligations of the parties in the bankruptcy process.

Should entrepreneurs put all their net worth under pressure and be responsible for the company's debts? If people can file for bankruptcy like a company, or they can prevent many of these tragedies from happening. Now, there's a good chance it's about to come true.

Some people may wonder why a business can file for bankruptcy, but an individual cannot. What is the difference between personal bankruptcy and business bankruptcy? Next, I will introduce you to the knowledge of the difference between personal bankruptcy and corporate bankruptcy and related aspects, and I hope to help you solve the corresponding problems.

OneDifference Between Personal Bankruptcy and Business Bankruptcy

The difference between corporate bankruptcy and personal bankruptcy is mainly due to the difference in the subjects that suffer losses after the bankruptcy occurs. Bankruptcy is well understood, that is, all assets are insufficient to pay off the debts due, and the enterprise provides all the debtor's assets for equal repayment through a certain procedure, and the court declares bankruptcy and dissolves. Both are measures taken when the enterprise cannot continue to operate, and it is possible to apply for bankruptcy protection, which will cause little damage to the personal property of the business owner, and bankruptcy is to close the enterprise by itself, but the previous debts have not been settled.

Bankruptcy can be compensated in order, and bankruptcy is not compensated.

2. What are the characteristics of bankruptcy

1. The debtor cannot pay off the debts due"Debts as they fall due"refers to debts that have reached the deadline for fulfilling debt repayment obligations; "Liquidation"means full repayment; "Non-liquidation" refers to the various possibilities of not being liquidated on time. The debtor's insolvency does not automatically qualify as "unliquidated".

2. The creditor's fair repayment of all the debtor's property is not enough to pay off all the debts, which determines that the creditor cannot realize all the debts. According to the requirement of "homogeneous creditor's rights and equal status", it is necessary to distribute the debtor's property among various creditors in accordance with the legal order and in the same proportion to ensure fairness among creditors.

3. If there is a majority of creditors, if there is only one creditor, only the general civil enforcement procedure is required. When there is a majority of creditors, if the general civil enforcement procedure is adopted, because the creditors compete to request enforcement against the debtor's property, it may result in a situation where some creditors are not repaid or only receive a small amount of repayment, resulting in an obviously unfair result, so a special procedure - bankruptcy procedure is required to ensure the fairness of the profits and losses of each creditor.

4. Cancel unpaid debts.

3. What are the circumstances under which the law does not accept personal bankruptcy?

According to Article 14 of the Regulations on Personal Bankruptcy of the Shenzhen Special Economic Zone, there are four circumstances in which a bankruptcy application may not be accepted by a people's court.

1. The debtor does not comply with the provisions of Article 2 of these Regulations, or the creditor's application for bankruptcy liquidation of the debtor does not comply with the provisions of the first paragraph of Article 9 of these Regulations;

2. The applicant applies for bankruptcy for improper purposes such as transferring property, maliciously evading debts, and damaging the reputation of others;

3. The applicant has made false statements, provided false evidence and other acts that obstruct the bankruptcy proceedings;

4. The debtor has been exempted from unliquidated debts for less than eight years in accordance with these Regulations.

The above is to bring you the relevant knowledge about the difference between personal bankruptcy and corporate bankruptcy, the difference between personal bankruptcy and corporate bankruptcy is mainly that the subject of the loss after the bankruptcy behavior is different, and we do not support personal bankruptcy at present, if you do not understand anything or have other questions, you can consult a lawyer.

Hello dear. Here are the following conditions for you to find out that the personal bankruptcy law requires the following: 1. The inability to pay off the due debts cannot be repaid, which refers to the debtor's objective property situation that the debtor is unable to repay the debts due to the due royal demolition family and the imperial fortune due to the loss of solvency, also known as the inability to pay or the inability to pay.

The elements of insolvency are: (1) the debtor loses solvency. The determination of whether the debtor has the ability to repay is generally based on the debtor's property, credit, labor services and other factors.

Payment of money or property is the usual method of debt settlement; Repayment of debts by credit method mainly refers to the debtor borrowing new debts to repay old debts, or agreeing to defer the repayment of debts; Repayment of debts by means of capacity mainly refers to the debtor's repayment of debts in the currency of providing labor services, technical services, etc., accepted by creditors. Insolvency occurs when the debtor is unable to pay its debts in all respects. The determination of solvency should be based on the objective state, that is, the lack of solvency is not a subjective unwillingness or malice of the debtor to refuse to pay, but an objective situation of inability to pay.

2) What the debtor cannot pay off is the debt that has reached the repayment deadline and has made a demand for repayment, is not disputed, or has a definite name. (3) The debt is not limited to monetary payment as the subject matter, but must be a debt that can be evaluated in monetary terms, otherwise it cannot be repaid in bankruptcy proceedings because of the form of debt, and it is of no practical significance to declare the debtor bankrupt. (4) Failure to pay is the debtor's continuous inability to repay for a considerable period of time or a foreseeable period of time, rather than a temporary suspension of payment such as temporary capital turnover difficulties.

5) Inability to pay refers to the objective property status of the debtor, which is not determined by its subjective understanding or expression, and shall be ruled by the court in accordance with law and facts. 2. Insolvency or obvious lack of solvencyThe so-called insolvency refers to the debtor's liabilities exceeding the actual assets. It focuses on the proportional relationship between assets and debts, and examines the debtor's repayment ability only to the extent of actual assets, without considering possible repayment factors such as credit and ability, and when calculating the amount, it is included in the total amount regardless of whether it is due.

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