Research on the Establishment of China's Personal Bankruptcy Legal System: From the Perspective of Japan's Personal Bankruptcy System

Abstract

With the increase in personal consumption and investment in China, debt defaults started to appear as a common phenomenon and also a challenge. These factors altogether have led to rising personal excessive debts. Therefore, as the personal debt crisis is getting more and more serious today, the society of China urgently needs a new effective mechanism that can resolve debt disputes between individuals. It is hoped that the personal bankruptcy legal system will become a remedy for over-indebted persons. Japan is the first country in Asia to establish the personal bankruptcy system, which has already established a relatively complete personal bankruptcy exemption system. On the basis of drawing lessons from the German bankruptcy law, Japan has also absorbed the advantages of the American bankruptcy law and improved the Japanese bankruptcy law system. Therefore, it is very beneficial for China to learn from Japan's personal bankruptcy system, because China urgently needs to establish a personal bankruptcy system and absorb the excellent experience of other countries.