Can a debtor request to manage his property and business affairs on his own?

The debtor may request to manage his property and business affairs on his own. According to Article 80 of the Enterprise Bankruptcy Law of the People's Republic of China, if the debtor manages its property and business affairs on its own, the debtor shall prepare a draft reorganization plan. It should be noted that since the debtor has a certain conflict of interest with other stakeholders, especially creditors, the cost of reorganization is borne by the creditor in the final analysis, and the debtor has the moral hazard of harming the creditor's self-interest, so it is required to have a high degree of transparency in its actions.

In this case, the debtor's self-management must be carried out under the supervision of the administrator, that is, the administrator's supervision function is established to ensure that the debtor's actions are in line with the purpose of the establishment of the self-management system.

Are you referring to businesses? Interpretation of the Enterprise Bankruptcy Law: Article 73 and Article 73 During the reorganization period, upon the application of the debtor and the approval of the people's court, the debtor may manage its property and business affairs under the supervision of the administrator.

In the circumstances provided for in the preceding paragraph, the manager who has taken over the debtor's property and business affairs in accordance with the provisions of this Law shall transfer the property and business affairs to the debtor, and the functions and powers of the manager provided for in this Law shall be exercised by the debtor. Interpretation: This article is about the debtor's own management of property and business affairs. In accordance with the provisions of this Law, after the bankruptcy application is accepted, the administrator shall take over the debtor's property and be responsible for the management of the debtor's property and business affairs.

During the reorganization period, the administrator may continue to perform this role. However, in the process of reorganization, taking into account the debtor's better familiarity with its business and property situation, the debtor's management of the property and business affairs may make the reorganization more likely to be successful. In order to give full play to the advantages of the debtor's business management personnel in understanding the true situation of the enterprise, and to encourage the debtor to get out of the business predicament as soon as possible through legal procedures, this Law provides that upon the debtor's application, the people's court may permit the debtor to manage its property and business affairs on its own.

If the debtor does not file an application or the people's court rejects the application, the administrator will still manage the debtor's property and business affairs. According to the provisions of this Law, the people's court shall appoint an administrator when accepting the bankruptcy application. Therefore, the administrator must have already begun to manage the debtor's property and business affairs during the reorganization period.

To this end, this article provides that if the debtor manages its property and business affairs on its own, the manager who has taken over the debtor's property and business affairs shall hand over the property and business affairs to the debtor; The powers of the administrator under this Law are exercised by the debtor.

Article 73 of the Enterprise Bankruptcy Law stipulates that after the court approves the debtor's own management of property and business affairs, the administrator will only perform the duties of supervising the debtor, and the functions and powers of the administrator under the Law shall be exercised by the debtor. In the author's opinion, there may be certain problems in handing over all the functions and powers of the administrator to the debtor indiscriminately.

Under the management model of the manager, there are three main types of functions and powers of the manager during the reorganization period: (1) the right to investigate and inspect; (2) revocation and recovery of property-based powers; (3) Reorganization of transactional powers. The power of investigation or inspection is the power of the administrator to investigate the debtor's property, creditor's rights and debts at the time of acceptance of the reorganization or the behavior before the acceptance of the reorganization.

The right of revocation in reorganization is the right of the administrator to apply to the court to revoke the debtor's behavior of defrauding creditors or impairing the fair repayment of all creditors carried out by the debtor within the statutory period before the acceptance of the bankruptcy application. One of the consequences of the right of revocation is the recovery of property that has been illegally disposed of, and is therefore similar to other powers to recover property, such as the recovery of capital contributions, the recovery of abnormal income of relevant persons and the misappropriation of corporate property. The other functions and powers of the administrator can basically be classified as reorganization affairs, such as reviewing and declaring claims and preparing a list of claims, proposing to convene a creditors' meeting, formulating a reorganization plan, and managing and disposing of the debtor's property.

In addition, under the debtor's self-management model, there is also a special supervision authority of the administrator. The above-mentioned functions and powers of the administrator during the reorganization period should be analyzed in detail, and it is not appropriate to authorize the debtor to exercise them.

Yes, the debtor's self-management of property is a circumstance of bankruptcy reorganization proceedings, while bankruptcy reorganization is a procedure of enterprise bankruptcy. Article 13 of the Enterprise Bankruptcy Law clearly stipulates that: "If the people's court decides to accept the bankruptcy application, it shall appoint an administrator at the same time.

Therefore, where the debtor manages the property on its own, it is necessary to appoint an administrator.