Enterprises can choose to go bankrupt when they are insolvent or unable to operate. At present, China's bankruptcy law only applies to enterprises, and does not involve natural persons. Individuals can not go bankrupt.
Yesterday, the Development and Reform Commission jointly issued the Reform Plan for Quickening and Improving the Exit System of Market Subjects, proposing to study and establish an individual bankruptcy system, focusing on solving the problem of joint and several liability guaranteed debts of natural persons arising from enterprise bankruptcy. It is clear that liabilities related to production and business activities undertaken by natural persons for reasons such as guarantees can be reasonably exempted from liability according to law. Gradually promote the establishment of natural person eligible consumption liabilities can be reasonably exempted from liability according to law, and ultimately establish a comprehensive personal bankruptcy system.
The rules of the Development and Reform Commission proclaim the era that individuals can also go bankrupt. At present, the provisions have not been fully implemented. The domestic personal bankruptcy system is expected to be piloted in some areas in the second half of the year.
Whether for enterprises or individuals, the bankruptcy system is actually a kind of encouragement and tolerance, giving enterprises and individuals a chance to come back again. It also encourages innovation and entrepreneurship, and avoids the situation that one failure will never be lost. It is of great significance to social and economic development.
However, bankruptcy does not mean exemption. Although many people evade debt disputes in the name of bankruptcy in European and American bills, bankruptcy is not unconditional, but also has a certain disciplinary nature, making bankruptcy also pay a certain price, including reputation, work, life and other inconveniences.
At present, the personal bankruptcy system in China has just been announced. It still needs supporting rules to regulate the personal bankruptcy system, protect the good and punish the bad.