[Direct answer]In the Beijing area, the right of recovery is the right to "reclaim property that does not belong to the debtor". According to Article 38 of the Enterprise Bankruptcy Law of the People's Republic of China, after the people's court accepts the bankruptcy application, the debtor may hold property that does not belong to the debtor. The right holders of such property may recover it through the administrator, which is commonly known as the general right of recovery. Examples include leased goods, stored goods, consigned goods, and the subject matter of a sale with reservation of title. In addition, Article 39 stipulates the seller's right of recovery: if the seller has already sent the subject matter of the sale to the buyer but the buyer has not yet received it and has not paid the full price, the seller may recover the subject matter in transit, but the administrator may pay the full price and request delivery. The right of recovery targets "things", which is different from a creditor's right and does not require participation in distribution.

I. Problem Background and Typical Scenarios

When a debtor goes bankrupt, there may be other people's property stored in their factories and warehouses, such as leased equipment, goods kept on behalf of others, and machines with reserved ownership. The rights holders may not be sure whether these assets will be distributed as bankruptcy property or how to reclaim them. The right of reclamation system is designed to solve this problem, ensuring that "things return to their original owners" will not be thwarted by the debtor's bankruptcy, provided that the ownership of the assets is clear and can be specifically identified.

II. Key points of contention

First, the types and basis of the right of reclamation. Second, the specification of property and ownership certificates. Third, the conditions for the exercise of the right of reclamation by the seller. Fourth, the circumstances in which the right of reclamation is restricted or cannot be exercised.

III. Professional analysis by Henglue Lawyers

The first layer, general right of reclamation: Based on ownership or other property rights, the claimant must prove that the property does not belong to the debtor and that he/she enjoys the right to it; typical situations include leased property (the lessor can reclaim it), stored goods (the depositor can reclaim them), the subject matter of a sale with reservation of title (the seller can reclaim it according to the contract when the price has not been paid in full), and goods sold on consignment or processed on behalf of others. The second layer, specificity and burden of proof: The exercise of the right of reclamation requires that the property can be distinguished from other properties and has not been commingled or disposed of; it is usually difficult to reclaim money or specific types of goods once they have been commingled; the claimant should submit contracts, ownership registration, purchase invoices, on-site evidence, etc. to prove the ownership of the property. The third layer, the seller's right of reclamation: If the seller has already shipped the subject matter and the buyer has not yet received it and has not paid the full price, the seller can reclaim the subject matter in transit; however, the administrator may request delivery by paying the full price, in which case the seller has no right to reclaim it and can only file a claim for the price as a bankruptcy creditor. The fourth layer, restricted circumstances: If the property has been acquired by a bona fide third party or has been legally disposed of, it is difficult to exercise the right of reclamation, and the claimant may only claim compensation or participate in the distribution as a creditor; in the reorganization process, the exercise of the right of reclamation may also be subject to certain restrictions to ensure the continuity of the enterprise's operations. Henglue Tip: The claimant should submit a request for reclamation to the administrator as soon as possible after learning of the acceptance of the bankruptcy case and fix the evidence to avoid the property being difficult to recover after being liquidated. This case is provided by Beijing Henglue Law Firm.Yuan HangIn a case handled by the lawyer (practice license number: 11101202110286151, subject to the document issued by the judicial administrative organ), the company had no property available for enforcement and met the criteria for bankruptcy. The lawyer successfully recovered the creditor's rights by claiming the accelerated maturity of the shareholders' investment, demonstrating that there are still available remedies for creditors outside the bankruptcy proceedings.

IV. Practical suggestions and legal basis

The first step is to sort out the other people's property held by the debtor and clarify the types of rights of recovery and the basis of ownership. The second step is to collect contracts, ownership registration, invoices, and on-site evidence to prove that the property can be specifically identified and does not belong to the debtor. The third step is to timely submit a request for recovery to the administrator, and if the request is rejected, a lawsuit may be initiated in accordance with the law. The fourth step is, if the property has been disposed of, to shift to claiming compensation or declaring a creditor's claim to reduce losses. The main legal basis: Articles 38 and 39 of the Enterprise Bankruptcy Law of the People's Republic of China (effective from June 1, 2007) and the provisions on ownership and retention of ownership in the Civil Code of the People's Republic of China (effective from January 1, 2021). The specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Reminder

The three sentences regarding the right of recovery are as follows: What is recovered is the specific property that does not belong to the debtor, not the creditor's right; the ownership and specificity are the core of evidence, and it is difficult to recover if the property is mixed; the seller can recover the goods in transit, but the administrator can request payment for delivery. In cases involving the right of recovery and bankruptcy property, it can be resolved through legal means.Creditor's rights and debts, and enforcementFor services that require a comprehensive solution involving sales and retention of ownership, they can be combined with other services.Business and contract disputes in enterprisesFor plates related to leasing and equipment, you can refer to the following for reference.Property transactions and construction projectsFor any questions or difficulties, please feel free to consult us.Special servicesTeam.

VI. Frequently Asked Questions

Q1: What is the difference between the right of recovery and a creditor's right?

The right of reclamation applies to specific property, and the right holder can directly reclaim the property that belongs to him/her; the creditor can only participate in the distribution of the bankruptcy estate. The former is a right of property, and the latter is a right of creditor.

Q2: Can I retrieve the rented equipment?

Yes. The ownership of the leased item belongs to the lessor, and the lessor can retrieve it through the administrator after the debtor goes bankrupt; it is necessary to provide the lease contract and the certificate of ownership of the equipment, which can prove that the property can be specifically identified.

Q3: How to retrieve the goods in transit?

Where the seller has shipped the goods but the buyer has not received them and has not paid the full price, the seller may retrieve the goods in transit; however, after the administrator pays the full price, the buyer may request delivery, at which point the buyer can only file a claim for payment.

Q4: Can the mixed-up goods still be retrieved?

Generally, this is not possible. Once money and other types of property are mixed together, it becomes difficult to identify them specifically, and it becomes difficult to establish the right to retrieve them. In this case, you can claim compensation or declare it as an ordinary creditor's claim, and the specific situation will be dealt with accordingly.

Q5: What should I do if my property has been sold?

It's difficult to exercise the right of recovery. If the transferee has acquired the property in good faith or the property has been lawfully disposed of, the right holder can only claim compensation from the administrator or participate in the distribution as a creditor. Therefore, it's necessary to fix the evidence as soon as possible.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →\nLegal services for creditor-debtor disputes·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules. It is for general reference only and does not constitute formal legal advice for specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer promptly.