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Recently, Wuhan, Hubei. The man threatened to commit suicide by lying on the rails, causing serious chaos in public order.Sentenced to one year and six months in prison, suspended for two years.

The police said in an interview: "The man had the idea of ​​committing suicide because he owed a debt and felt great pressure.

Suicide was originally a personal act and should not be charged. However, the man chose to commit suicide on the track in the bustling area of ​​Wuhan city center, causing traffic to be paralyzed for 2-3 hours during peak hours. He talked to his family and said that he immediately became an'net celebrity'. This behavior has constituted the crime of creating disturbances. "

It is reported that this is the first case in China that has been held criminally responsible for committing suicide by jumping off the track.

This is just a negative example I saw recently, but I thought of a group that is easy to find short-sightedness.

前言

This is not the first time we have heard of someone seeking suicide due to excessive debt. With the changing times, competition is becoming increasingly fierce and people are facing higher risks.

Especially in this extremely turbulent era, you may be ruined if you are not careful.

Statistics show that in the past year, 40 Australian residents were affected by more than 3 bankruptcies and 1 bankruptcies that have entered external management. You may think that as long as you are not in business, you will not go bankrupt, so bankruptcy has nothing to do with you. In fact, doing business is just one of the triggers for personal bankruptcy.

Today, I’m going to talk to you about the “personal bankruptcy” in Australia.

Reading navigation

XNUMX. The number of bankruptcies in Australia is rising

XNUMX. Analysis of the causes of Australian bankruptcy

XNUMX. "Fragile" entrepreneurship

Fourth, the personal bankruptcy system in Australia

V. Evolution of the bankruptcy system

The number of bankruptcies in Australia is rising

According to the latest data from illion, an Australian and New Zealand data analysis agency,In fiscal 2018, more than 32,000 Australians declared bankruptcy, and the national personal bankruptcy rate rose by 4%.

The agency’s economic adviser Stephen Koukoulas said that factors such as rising household debt, slow wage growth and falling house prices will bring more bad news to residents living in Australia.

From a state perspective, Western Australia and the Northern Territory have suffered the most. Western Australia's bankruptcy rate increased by 11.7% year-on-year, followed by the Northern Territory, which increased by 10.6%. Queensland has the largest number of bankruptcies in Australia. In the past year, more than 9,415 people have declared personal bankruptcies, but the growth rate of bankruptcies slowed to 1.5%. Nearly 6000 people in NSW declared bankruptcy, an increase of 7.6% over the previous year.

In contrast, Victoria is the only state that has experienced a decline, with a decline of 2.2% and a total of 5,809 people declared bankruptcy.

Stephen Koukoulas said: "From a macro perspective, there is no doubt that for the state, when the economy is strong, the bankruptcy rate is very low, and vice versa. Many small businesses use real estate loans to help their commercial loans. When the real estate market drops Especially in Perth and Darwin, banks are less inclined to expand this type of lending. We are just beginning to see this in Sydney."

Koukoulas said Australians in remote areas may also face increasing economic pressure due to drought, and many areas are at the top of the list of several states.

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What causes Australian bankruptcy

In Australia, there are many factors that have contributed to the increase in the number of bankruptcies. First of all, we exclude natural and man-made disasters.

Consumer debt (such as mortgages) has steadily risen, and daily necessities (such as water, electricity, coal, gasoline) and health care spending have surged. The slow increase in wages has made debt-ridden Australians even worse.

ASFA data shows that since the fourth quarter of last year, nearly 18% of new debtors have fallen into personal bankruptcy due to business problems, an increase of 2 percentage points from the third quarter of last year. In other words, 100 out of 18 bankrupts went bankrupt because of business.

Among them, entrepreneurs are a very vulnerable group. You know, the probability of failure in a startup is more than 80%, and the probability of success is no more than two in XNUMX.

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"Fragile" entrepreneurship

Some people describe entrepreneurship like this: "It's like operating an aircraft full of malfunctions, while barely flying and constantly repairing it. Sometimes it's higher and sometimes lower, but every second makes people unable to really relax. It may be my last second."

In 2016, there were 552.8 million newly registered companies in China. Most of them couldn't survive the first stage. Even with a good start, 88% of companies will die from A to C rounds.

Paul Graham, the father of Silicon Valley entrepreneurship, once described it in "HowNotToDie": "Generally speaking, when a startup company dies, it either has no money or the key founder ran away, and usually the two happen at the same time."

However, more and more people now think that the entrepreneurial environment is better and easier than before, but in fact, the barrier to entry is low, and the barrier to success can only be higher than before. I remember that Ali Dingding put a set of ads on the subway last year"Starting a business is hard, persisting is cool" It is very realistic and cruel, which makes countless entrepreneurs feel heartbroken.

近5年,中国破产案件数量连续攀升,2016年全国新受理的破产案件比2015年上升53.8%,去年1至7月,共受理公司强制清算类和破产类案件高达4700余件。

Although the Bankruptcy Law was formulated from the perspective of ensuring the interests of enterprises,However, in actual operation, the current bankruptcy law only allows enterprises to go bankrupt. At the same time as the corporate legal person obtains the opportunity of rebirth or euthanasia, the living natural person is still in panic under the recovery of creditors.

Professor Li Shuguang, director of the Research Center for Bankruptcy Law and Corporate Restructuring of China University of Political Science and Law, described “Corporate bankruptcy laws without personal bankruptcy systems can only be regarded as half of bankruptcy laws. Bankruptcy procedures are essentially the reconfiguration of social resources. A complete bankruptcy system , Can promote the market to play a decisive role in the allocation of resources. In this sense, the market economic system cannot be without a personal bankruptcy system."

澳大利亚

In Australia, the situation is different. Even with the economic downturn, many people fall into the embarrassment of insolvency and become debtors.

When the debtor is chased by the creditor in desperation and sleepless at night, applying for personal bankruptcy can free the debtor from the debt and start a new life.

The “Natural Person Bankruptcy Law” separately stipulated by Australia applies to all natural persons in Australia, including ordinary citizens, individual businessmen, individual partnerships, stateless persons in Australia, foreigners, etc., and for minors, mental patients, and deceased debtors. Special provisions were made for bankruptcy.

Regarding the cause of bankruptcy, Article 40 of the Australian Natural Person Bankruptcy Act stipulates that the debtor has XNUMX types of bankruptcy, and the creditor can file an application for bankruptcy against the debtor to the court. The core is that when the debtor has fallen into a situation where it cannot pay the debt, such a provision reflects the concept of Australian bankruptcy law to protect the interests of creditors.

Therefore, even though Australia's per capita debt level is among the highest in the world, there are few news of Australian bankruptcy and suicide.

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Personal bankruptcy system in Australia

In Australia, bankruptcy (Bankruptcy) refers to a legal procedure that is announced when an individual is unable to pay due debts.

Once bankruptcy is declared, it means that the debtor has given up all financial and asset control rights, and given this right to the trustee (Trustee) in exchange for the creditor’s exemption from the protection of legal proceedings.

The property loss and mental harm caused by bankruptcy to individuals and families is very huge. In Australia, if an individual goes bankrupt, there are not only restrictions on his work, creditworthiness, and travel for the next 3-5 years, but also strict restrictions on the personal property he can own.

1

How to sort out debt entanglements?

Once bankruptcy is declared, creditors will stop collecting debts from debtors, including: personal debts, debts borrowed from friends and family. The bank can no longer recover the debt from the debtor.

However, during the period of bankruptcy, the debtor is obliged to continue to pay off certain debts, such as court fines, compensation for traffic accidents, utility bills, and education loans.

At the same time, the trustee can also sell the debtor’s assets and investigate the transfer of assets. The debtor’s name will be kept on the credit report for 5 years, and there will be restrictions on applying for a credit card or loan.

2

Can the property be guaranteed?

According to Australia's current Personal Property Securities Act (The Personal Property Securities Act 2009), family homes under the name of bankrupt individuals are not on the property protection list. In other words, bankruptcy will most likely result in the sale of family homes to offset loans. But you can keep general household items, and some tools and vehicles used to earn income.

3

Will it affect the marriage and family?

Statistics show that getting into financial trouble is one of the main reasons leading to divorce. Divorce and bankruptcy are two completely different legal procedures. If both spouses have decided to divorce and file for bankruptcy, should they divorce or file for bankruptcy first? There is no standard answer, and it is best for both parties to listen to the advice of their lawyers.

4

Can I go abroad after bankruptcy?

Generally speaking, after declaring bankruptcy, if you want to leave the country, the debtor must obtain the trustee's approval.

The evolution of the bankruptcy system

In ancient Greece, if a person did not pay the debt, he himself and his family would become a "debt slave" and repay the debt with labor. In the tradition of the ancient Jews, if the debts were not paid, forced labor was required. However, every seven years, the debts to the people in the clan can be written off; every seven seven years, that is, 7 years in total, All the internal and external people were forgiven of debts, and all slaves were liberated. This kind of debt exemption after a certain number of years has affected the current bankruptcy system to a certain extent.

The modern "Bankruptcy Law" has gradually evolved from punishment to debtors to an exemption system.

The British Bankruptcy Enactment Act of 1570 stipulates that if the debtor escapes to another place and leaves his original residence, it constitutes fraud. Bankruptcy can be initiated. The judge will sell his property and divide it equally among all creditors; and put him in prison. He was also shown to the public by Daisong, and one ear was cut off.

After the development of capitalism to a certain stage, people began to think that the bankrupts themselves were poor people, and their endless imprisonment did not bring any benefit to the creditors.

The "Anna Bankruptcy Law" enacted in the early 18th century began to impose immunity on bankrupts: honest insolvents can be exempted. After that, the modern bankruptcy law gradually shifted from protecting the rights and interests of creditors to protecting debtors.

And in the United States today, the personal bankruptcy that has been taken for granted by everyone is not just an institutional framework, it is also firmly rooted in American culture.

Excessive consumption and large-scale credit are the basic characteristics of the American way of life. Indebtedness seems to be a matter of course for Americans. Unlike the Chinese people’s habit of "paying with one hand, delivering with one hand," they have countless amounts every month. The bill has to be paid.

In addition, the culture of encouraging entrepreneurship has also continuously driven Americans to join the market and catalyzed the development of the credit industry. Therefore, debt is inevitable. However, the United States pursues a culture of "forgiveness" for bankruptcy. In the American drama "Sisters in Bankruptcy", Max filed for bankruptcy, freed himself from debts and restarted working to support himself. The bankruptcy exemption system freed her from the trouble of old debts, and she could even figure out the business plan of raising 25 yuan to open a cupcake shop. It seems that under the exemption system, applying for a loan is not a problem.

END

A series of unpleasant vocabularies such as debt, loss, insolvency, bankruptcy, etc., have become an inevitable product of market competition.

How to make the current bankruptcy system a beacon for every debtor, so that they can see hope in the darkest moments of their lives, is something that any country with a prosperous rule of law needs to think about.

Even if there is no way to immediately establish a relatively "perfect" legal environment. So, should we do more before encouraging young people to start their own businesses?

Rather than selling books on entrepreneurial inspiration like the present, the market is selling a lot of books about entrepreneurship; the soul is chicken soup, the bold words and aspirations are constantly brainwashed, but they don't really care about the risks that young people face after failing to start a business.

Sources of information in this article: "Australian", "Financial assistance and bankruptcy", Australian Financial Security Agency website https://www.afsa.gov.au, "Bankruptcy Law History" www.victoriahancock.com.au