Personal Bankruptcy Meets New Rules Of Debt: The Fate Of Two Star Entrepreneurs Wives

The draft of the marriage and family code of the civil code which has just completed the third consideration has brought Jin Yan's experience into the vortex of public opinion again.

In October 22nd, the Beijing high court rejected the appeal request of Li Ming, the widow of the pony Pentium, and upheld the original judgment. This means that Jin Yanxu is responsible for paying off the debts of Li Mingyin, the two hundred million yuan debt formed by the gambling agreement.

According to reports, in January 2, 2014, Li Ming suddenly died, the pony galloping did not appear on schedule successfully listed, "gambling" failure. Jiayin investment company and Li Ming's widow, Kim yen, were in court. In September 25, 2017, the Beijing intermediate people's court made a judgement: Based on the twenty-fourth interpretation of the judicial interpretation of marriage law (two), Jin Yan should bear joint and several liability for joint debts within 200 million.

The husband died and two houses in the family were closed down, and three generations in the family could only rent houses. In the first instance, Jin Yan thought that she did not sign the "gambling agreement". The huge investment was not used for a husband and wife to live together, nor did he have a share of the pony.

However, the court of second instance decided that Jin Yan was aware of the obligation of share repurchase stipulated in the gambling agreement and participated in the joint operation of the company. After Li Ming's death, Jin Yan's series of actions confirmed that Li Ming and Jin Yan jointly run the company, and the case involved debts belonging to two persons operating jointly.

This confirms a query on the husband and wife debt law in the draft marriage and family code of the civil code. The draft stipulates that the debts jointly expressed by the husband and wife jointly sign or the husband and wife after the ratification and so on are the joint debts of the husband and wife.

But in the three instance, Sun Xianzhong, member of the Constitution and Law Committee of the National People's Congress, said, "if the two parties do not have a joint signature or the husband and wife have not ratified it afterwards, is it a joint debt between the husband and wife? Can the court recognize the protection? If the husband and wife discuss a good party is not to sign, then do not ratify, and how to do?

In fact, on the issue of husband and wife common debt, if we can not accurately classify the main body of debt, it may damage the interests of creditors, or make a bona fide third party a debtor. Therefore, how to protect the interests of both sides in a fair and reasonable way has always been seen.

The same may be troubled by the new rules of husband and wife debt, another star entrepreneur Jia Yueting's wife Wei Gan. Recently, there are reports that Jia Yueting and Wei Gan have filed for divorce with the court.

However, the difficulty of deciding whether Wei Gan will bear the joint debts of husband and wife may be less than that of Jin Yan. In April 2018, Wei Gan was included in the list of dishonest executors. The executive information from the third intermediate people's Court of Beijing showed that Wei Gan should pay RMB 1 billion 403 million yuan to Zhejiang Zhongtai Chuang Exhibition Co., Ltd., and Zhejiang Zhongtai Chuang Exhibition Co., Ltd. is one of Jia Yueting's creditors.

Wei Gan also said in January 7, 2018 that Weibo said that she worked hard with the debt handling team to achieve the substantive solution of some debts by means of assets payment and sale of assets.

The next question is whether Jia Yueting's debts will be solved if Wei Gan completes his personal bankruptcy in the United States. Many bankruptcy experts have said that the situation is extremely complicated.

If Jia Yueting and Wei Gan's common creditors reach a debt restructuring through personal bankruptcy, Wei Gan will naturally be free from debt bondage. But if Jia Yue Ting's personal creditors failed to reach a reorganization agreement, because there is no personal bankruptcy system in China, even if Jia Yue Ting completed bankruptcy in the United States, the creditors who did not participate in bankruptcy reorganization in China could still claim debts to him. When Wei Gan needed to take up the debt, he still needed to define the joint debt of the couple.

However, Wei Gan has at least "benefited" from Jia Yueting's personal bankruptcy compared with Jin Yan. It has been reported recently that Jia Yueting transferred $510 thousand to Wei Gan before filing for bankruptcy, in the name of family expenses. The cost may be considered as an exemption from Jia Yueting's bankruptcy.

Jia Yueting is now "insolvent". The $510 thousand may be Jia Yueting's last material reward to accompany his wife for many years. But is it still sad that Wei Gan, who gets only 510 thousand dollars, is still more miserable than ever?

In the developed American bankruptcy system, the bankrupt's wife and child treatment has been taken seriously. Former Harvard University law school professor Elizabeth Warren has firmly represented the debtor's rights and interests, and called for loosening the scope of exemption from personal bankruptcy.

When the United States proposed the legislative proposal of "the credit card debt due to fraud to be included in the scope of an unavoidable liability", Elizabeth Warren objected. The reasons for her lobbying included that the divorced husband was most likely to take credit cards and go bankrupt, because the credit card debt could not be exempted, so the divorced women and children would have to join the heavily creditworthy creditors to participate in bankruptcy liquidation.

That is to say, the debtor will get rid of the obligation to support his ex-wife and child through bankruptcy, and place the divorced women and children in the competition with credit institutions. She also criticized: "these women must compete with the heavily debtors and their entrusted accounts. In this case, most divorced mothers get less than 40% of their share of compensation. "