How should individual bankruptcy and bankruptcy protection system be designed?

I have a legal perspective on personal opinion:

1. There will be a lot of people filing for bankruptcy protection after the creation of personal bankruptcy protection.

Yes. And this is a phenomenon that should be encouraged in policy – otherwise "protection" would have little meaning. From the policy function of bankruptcy law, the protection debtor has a certain time to gasp and relieve the debt pressure after getting into financial predicament, it is one of the policy functions of the bankruptcy law to have the opportunity to reorganize its financial position and to think about the future (for individuals, including life planning, career choices, etc.) without being divided by creditors.

However, bankruptcy protection does not mean the abuse of the bankruptcy mechanism, in the prevention of debtor fraud and moral hazard, the bankruptcy laws of various countries have been specially designed. Don't start here. But I do understand that many people are concerned about the huge risk of abuse and avoidance in the personal bankruptcy system, but theoretically it is possible to design institutional barriers.

2. There will be no bankruptcy joint in China.

Ditto, I don't quite understand the meaning of the word.

3. Personal bankruptcy protection will cause a lot of bad debts of banks

If you have to choose an answer between the and the non, I will choose not. My position is: the causes of large banks ' bad debts and the personal bankruptcy system, on the contrary, in my second half of 2012 in Taiwan empirical research, for example, the personal bankruptcy system is precisely the excessive inflation of personal consumption credit (at the same time the increase in the rate of bank bad debt) system reform results.

Of course, one question that must be answered is: Will personal bankruptcy be the cause of excessive inflation in consumer credit, which in turn leads to a big increase in bank personal or consumer loans? I think the possibilities are negligible. On the contrary, some American bankruptcy law scholars have pointed out that the individual bankruptcy system is precisely from the point of view of lending to curb the excessive expansion of consumer credit mechanism (here do not start).

Word, the establishment of a personal bankruptcy system is likely to cause a rapid increase in the rate of bankruptcy applications in the short term, so as to bring certain media effect and social influence; but at present, in my personal research, there is no empirical evidence that the establishment of a personal bankruptcy system has a significant correlation with stimulating the excessive expansion of consumer credit (which in turn leads to an increase in bank bad debts).

4. Personal bankruptcy protection will impact the private financing system

Yes. But not directly. My position is that, as the enterprise bankruptcy system is a part of modern market economy and the framework of enterprise management system, the individual bankruptcy system is also an integral part of modern consumer finance and personal credit system. The latter will directly impact the traditional private financing system.

The same is true of Taiwan: Since the 1980, the consumer credit system has been gradually established and flourished in the middle and late 1990, triggering a storm of card debt by about 2005 years; After 2009 years the storm cooled but the consumer credit market did not slide in the whole. One important consideration in the Taiwanese authorities ' decision to introduce consumer credit instruments (credit card cash cards) was to curb the once frenzied private financing and even the underground financial system, which, in short, "ground" the underground financial sector into the financial regulator's vision.

The modern consumption financial system, which is represented by small consumption loan, credit card application and use, can be said to have impacted the original nongovernmental financing system in the whole process of lending channel, Levy letter, wind control and late recovery debt.