Establishing the Order of Priority for the Settlement of Environmental Claims in Corporate Bankruptcy

Abstract

 Environmental and ecological issues arising from corporate production and business operations remain prominent. Compared to enterprises operating under normal conditions, market entities facing bankruptcy are mired in severe economic difficulties, causing economic hardship and environmental pollution to become intertwined and exacerbating the conflict. However, the current Bankruptcy Law suffers from a systemic failure to address the succession of corporate environmental liabilities and the protection of environmental interests, resulting in significant erosion of the environmental interests of relevant parties. As ordinary claims, environmental claims typically rank behind other priority claims in the order of priority for repayment, making it difficult to effectively safeguard environmental interests and violating the requirements of substantive fairness. Based on the realities of China’s ecological civilization construction and bankruptcy system, we must systematically explore the priority of environmental claims in corporate bankruptcy. This is not only an intrinsic requirement for improving China’s bankruptcy legal system and ensuring fair compensation for creditors, but also an essential step in advancing the construction of a Beautiful China through the rule of law and realizing the harmonious coexistence of humanity and nature.