In recent years, increasing amounts of bad credits, caused mainly by lack of social credit and the dislocated relationship between creditors and debtors, have posed a great threat to China s financial system.

It requires creditor s rights of creditor to the debtor be legal, the creditor have the legal creditor s rights to the third person.

In the old days,to limit the debtors to fulfill his obligation, the bankruptcy system was established and the stigma was attached to the bankrupts.

As we explore the application, effects of the subro gation system and debtors position in a subrogation inspection, we find out tha t the regulations of our subrogation system are not only limited but also depriv e debtors of their rights to .

Bankruptcy reconciliation system is a system when bankruptcy is justified, the detor reaches a reconciliation agreement with creditors under the permission of the court to avoid the declaration of bankruptcy.

The authors elaborate on the issuses from the aspects of creditors and debitors in order to find out the controversial points,and some solutions as well.

But in this course there are danger to the obligor s basic human rights.

If the third party performs in the obligor’s name, it shall be defined as unauthorized agency.