The Cost and Efficiency of Bankruptcy Law

The cost of Bankruptcy law is a sort of transaction cost, which is unproductive and indefinite.Reducing transaction cost is a way to improve the Efficiency of Bankruptcy law,in which the most important aspect is to determine the scope of property right.We believe that it is efficient when the gross benefit exceeds the damage.Generally,the efficiency of the reforming is always superior to liquidation,thus,the aim of the Bankruptcy law should lead Bankruptcy to Reforming.