The problems of cross-border personal bankruptcy in russian and chinese legislation and practice
https://doi.org/10.24147/2542-1514.2017.1(3).160-167
Abstract
The subject of the article is the legal and practical problems of cross-border personal bankruptcy
in Russia and China.
The main goal of this work is to analyze the major issues and obstacles in recognition and
enforcement of Russian individual bankruptcy decisions in China and introduce it to Russian
scholars and legal professionals.
The methodological basis is analysis of the Russian and Chinese legislation, judicial practice
and special literature
The results, scope of application. This article discusses the possibility of applying the provisions
of the Federal Law On Insolvency (Bankruptcy) to the Chinese nationals registered as
individual entrepreneurs in Russia. The article also reviews the Chinese legal regulation and
offers recommendations on execution of the court judgments on bankruptcy and collection
of debts from the PRC nationals. Existing Russian legislation allows to recognize the foreign
nationals as bankrupts. The provisions on the cross-border insolvency also apply to them.
The bankruptcy in China is not applied currently to the individuals, although theoretically it
may affect their property sphere during the bankruptcy of an individual private enterprise.
Conclusions. The cross-border insolvency of the Chinese nationals encounters obstacles on three
levels. Firstly, the awards of the Russian arbitration courts have not been practically enforced in
PRC due to inadequate notification of the Chinese party in the case. Secondly, Chinese courts in
principle are extremely reluctant in recognizing foreign judgments on bankruptcy, such cases are
exceptional. Thirdly, there is no personal bankruptcy institution in the PRC, while similar procedures
like bankruptcy of individual private enterprises are not applied in reality, and there are no
legislative prospects for the personal bankruptcy in the nearest future. Therefore, when conducting
the bankruptcy procedure for the Chinese nationals on the Russian territory, one can only
count on their property located on this side of the border.
About the Authors
T. Kareva
Far Eastern Federal University
Russian Federation
Russian Federation
PhD in Law, Associate Professor
AuthorID: 224990
V. Sonin
Far Eastern Federal University
Russian Federation
Russian Federation
PhD in Law, Researcher, Law School
SPIN-code: 4617-2995, AuthorID: 519862
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For citations:
Kareva T., Sonin V. The problems of cross-border personal bankruptcy in russian and chinese legislation and practice. Law Enforcement Review. 2017;1(3):160-167. https://doi.org/10.24147/2542-1514.2017.1(3).160-167
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