Recently, Wuhan, Hubei Province. The man threatened to commit suicide on track causing serious public disorder and was sentenced to one year and six months' imprisonment and two years' probation.
Police said in an interview: "the man was due to a debt of butt, the pressure was huge, only then had the idea of life."
Suicide is a personal act and should not be charged. But the man chose to commit suicide on the track in downtown Wuhan, paralysing traffic for two hours during peak hours and talking to his family, saying he was about to become a 'cyber celebrity'. The act has constituted a crime of provoking and provoking trouble. "
It is reported that to jump the track threatened to commit suicide is the first criminal responsibility in China.
This is only a recent negative example, but I think of an easy-to-see group.
preface
This is not the first time we have ever heard of people seeking suicide because of excessive debt. As the times change, competition becomes more and more intense, and the risks people face are getting higher and higher. Especially in this extremely turbulent time, you may lose your fortune if you're not careful.
Data show that over the past year, four hundred thousand Australian residents were affected by more than 30, 000 bankruptcy incidents and 10, 000 bankruptcy proceedings that have entered outside management. You may think you won't go bankrupt if you don't do business, so bankruptcy has nothing to do with you. In fact, doing business is just one of the triggers of personal bankruptcy.
Today, I'll talk to you about personal bankruptcy in Australia.
First, the number of bankruptcy in Australia has risen steadily.
More than 32000 Australians declared bankruptcy in fiscal year 2018, according to the latest data from illion, a data analysis agency in Australia and New Zealand, and individual breakdowns rose 4 percent across Australia.
Stephen Koukoulas, the agency's economic adviser, said rising household debt, slow wage growth and falling house prices could all bring more bad news to Australians.
In terms of states, Western Australia and the Northern Territory have been the hardest hit. Western Australia's breakout rate rose 11.7 percent year-on-year, followed by the Northern Territory, which grew 10.6 percent. Queensland has the largest number of bankruptcy failures in Australia, with more than 9415 individuals declared bankrupt in the past year, but bankruptcy growth slowed to 1.5 percent. Nearly 6000 people in the new state declared bankruptcy, an increase of 7.6 percent from the previous year.
By contrast, Victoria was the only state to fall by 2.2%, with 5809 people declaring bankruptcy.
"from a macro perspective, there is no doubt that for states, when the economy is strong, the rate of failure is low, and vice versa," Stephen Koukoulas said. Many small businesses use real estate loans to help their business loans. When the property market fell, especially in Perth and Darwin, banks were less inclined to expand such lending. We are just beginning to see this in Sydney. "
Koukoulas said that because of the drought, Australians in remote areas could also face increasing economic pressure, many of which are at the forefront of the list of several states.
Two, what causes the Australians to go bankrupt?
In Australia, there are many factors leading to the increase in bankruptcy, first of all, we rule out natural and man-made disasters.
Consumer debt, such as mortgages, has risen steadily, with daily necessities (such as hydropower, coal, gasoline) and health-care spending surging. Wage growth is slow, adding to debt-laden Australians.
Since the fourth quarter of last year, nearly 18 percent of new debtors have fallen into personal bankruptcy because of business problems, up 2 percentage points from the third quarter of last year, according to ASFA. In other words, 18 out of 100 bankruptcy are due to business bankruptcy.
Among them, the entrepreneur is a very vulnerable part of the group. You know, more than 80% of startups fail and no more than 2/1000 of them succeed.
III. "fragile" entrepreneurship
Some people describe entrepreneurship like this: "it's like a broken-down plane that barely flies and keeps fixing it." Sometimes taller, sometimes lower, but every second can't really relax, think it may be their last second. "
Most of the five million five hundred and twenty seven thousand nine hundred and ninety nine new Chinese companies registered in 2016 will not make it through the first phase, and 88 percent of them will die in turn A to round C even after a good start.
PaulGraham, the father of Silicon Valley startups, once described it in < HowNotToDie >: "in general, startups die, either out of money or the key founders run away, and they usually 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, it is only the threshold of entry, the threshold of success can only be higher than before. Remember last year Ali nail put a group of ads on the subway "Entrepreneurship hard, adhere to very cool", said very realistic, but also very cruel, so that countless entrepreneurs feel comfortable.
In the past five years, the number of bankruptcy cases in China has risen continuously, with the number of new bankruptcy cases accepted nationwide in 2016 up 53.8 percent from 2015. From January to July last year, more than 4700 cases of compulsory liquidation and bankruptcy of companies were accepted.
Although the bankruptcy Law has also been formulated from the point of view of guaranteeing the interests of enterprises, in practice, the current bankruptcy Law only permits the bankruptcy of the enterprise, at the same time when the enterprise legal person is given the opportunity to be reborn or euthanized. The living natural person is still in the creditor's recovery under the panic day after day.
Professor Li Shuguang, director of the Research Center on bankruptcy Law and Business restructuring at China University of political Science and Law, described "an enterprise bankruptcy law without an individual bankruptcy system as only half bankruptcy law." Bankruptcy procedure, in essence, is the reallocation of social resources. A complete bankruptcy system can promote the market to play a decisive role in allocating resources. In this sense, the market economy system cannot be without an individual bankruptcy system. "
In Australia, the situation is different. Even if the economy is depressed, many people fall into insolvency and become debtors.
When the debtor is hopelessly chased by the creditors and can't sleep at night, the debtor can be freed from the debt by applying for personal bankruptcy and can start a new life again.
Australia's separate bankruptcy Act for Natural Persons applies to all natural persons in Australia, including ordinary citizen, individual businessmen, individual partnerships, stateless persons in Australia, foreigners, etc., and to minors, mentally ill persons, The bankruptcy of the deceased debtor is specifically regulated.
As for the reasons of insolvency, article 40 of Australia's bankruptcy Law of Natural Persons provides that the debtor has fourteen kinds of insolvency acts, and the creditor may file an application against the debtor in the court. The core is that when the debtor is in a position where the debt cannot be paid, the provision reflects the idea that Australia's natural person bankruptcy law protects the interests of the debtor.
So even if Australia's per capita debt levels are at the forefront of the world, there is little news of Australian bankruptcy suicides.
IV. Individual bankruptcy in Australia
In Australia, bankruptcy (Bankruptcy) is a legal process declared when an individual cannot pay a debt due.
Once declared bankrupt, that means the debtor relinquishes control of all its finances and assets, giving it to trustee (Trustee) in return for creditors to be exempted from legal action.
Bankruptcy has caused great loss of property and moral damage to individuals and families. In Australia, if an individual goes bankrupt, there are not only restrictions on his job, credit, travel over the next 3-5 years, but also on the amount of personal property he can own.
1. How to clear up the debt entanglement?
Once declared bankrupt, creditors will cease to claim debt from debtors, including: debts owed by individuals, debts borrowed from friends and family members. The bank could no longer recover its arrears from the debtor.
But some debts remain obligated during bankruptcy, such as fines for court, compensation for traffic accidents, utilities and education loans.
At the same time, the trustee may also sell the assets of the debtor, investigate the transfer of assets and so on. The debtor's name will be kept in the credit report for five years and will be restricted when applying for a credit card or loan.
2. Can you keep the property?
Under Australia's current personal property Protection Act (The Personal Property Securities Act 2009), family housing for bankrupt individuals is not on the property protection list. In other words, bankruptcy will likely result in household housing being used for sale to offset loans. However, general household goods can be retained, and some of the tools and vehicles used to generate income.
3. Will it affect marriage and family?
Statistics show that falling into financial distress is one of the main causes of divorce. Divorce and bankruptcy are two very different legal procedures. If the husband and wife have decided to divorce and file for bankruptcy, is it the first divorce or the first filing for bankruptcy? Without a standard answer, it is best for both sides to listen to the advice of their lawyers.
4. Can I go abroad after bankruptcy?
Generally speaking, if you want to leave the country after the declaration of bankruptcy, the debtor must obtain the approval of the trustee.
V. Evolution of the bankruptcy system
In ancient Greece, if a man did not pay his debts, he himself, including his family, had to be a debt slave, working to pay off his debts. In the tradition of the ancient Jews, if they did not pay debts, they also needed forced labor, but every seven years, the debts owed to the people of the clan could be written off in one write-off. Every seven years, that is, 49 years, all of them are free of debt and all slaves are liberated. This debt can be exempted over a certain period of time, some of the impact of today's bankruptcy system.
The modern bankruptcy law gradually evolved from punishment of debtor to immunity system.
The British bankruptcy statute of 1570 provides that the debtor's escape to the field and his departure from his original residence constitutes fraud, may initiate bankruptcy, and the judge sells his estate in a proportional manner among all creditors; And put him in prison, shackled and cut off one ear.
When capitalism reached a certain stage, people began to think that the bankrupt themselves were poor, and that their endless incarceration had done little to the creditors.
The Anna bankruptcy Law, enacted in the early 18th century, began to exonerate the bankrupt: honest insolvent persons can be exempted. After that, the modern bankruptcy law gradually transferred from protecting creditors' rights to protecting debtors.
In today's United States, individual bankruptcy is not just an institutional framework, it is firmly rooted in American culture.
Excessive consumption and large-scale credit are the basic characteristics of the American lifestyle, and debt seems natural to Americans, unlike the Chinese habit of "paying money with one hand" and delivering goods at the same time. They have countless bills to pay every month.
In addition, the culture of encouraging entrepreneurship continues to drive Americans into the market, catalyzing the development of the credit industry, so debt is inevitable. But the United States pursues a culture of "forgiveness" bankruptcy, in which Max filed for bankruptcy, freeing himself from debt and starting to work again to feed himself. The bankruptcy exemption system, which protects her from old debt, can even raise $ two hundred and fifty thousand and start a cupcake shop, and it seems that under the exemption system, applying for a loan will not be a problem.
END
Debt, loss, insolvency, bankruptcy and so on a series of words that look bad, have become the inevitable product of market competition.
How to make the existing bankruptcy system a beacon for every debtor so that they can see hope in the darkest moments of their lives is something any country ruled by law needs to think about.
Even if there is no immediate way to establish a relatively "perfect" legal environment. So, should we do something more before encouraging young people to start their own businesses?
Instead of selling books on entrepreneurial motivations, as it is now, there is no real concern for the risks young people face when they fail to start a business; the soul broth, brainwashing, and bravado don't really care about the risks that young people face in the wake of their failure to start a business.
Author: Wen Jing Shelley