Abstract: The "No.1 Central Documents" issued in recent years have proposed several times to accelerate the legislation of rural collective economic organizations. Although the General Principles of Civil Law identifies rural collective economic organizations as special legal persons and further promotes them to the market, the market exit of such economic organization has not been studied thoroughly due to historical reasons and the fact that rural collective economic organizations are both for-profit and public service. A healthy market mechanism must have mature rules for both "market entry" and "market exit", and the bankruptcy system is the normal choice of modern legal person for market exit. However, whether it is applicable to rural collective economic organizations is still pending in theory and practice. Optimizing the business environment of rural collective economic organizations involves optimizing the market environment for market entry, market survival and market exit,among which market exit is where the defect lies. In view of the possibility and feasibility of bankruptcy of rural collective economic organizations, it is urgent to speed up the application of bankruptcy of such special legal persons.

Key words: rural area, collective economic organization, collective property, land management rights, application of bankruptcy, market entry