Due to the conceptual understanding issues in the bankruptcy protection legal system,misunderstandings have arisen about the function and role of the bankruptcy protection legal system.It is necessary to clearly recognize the importance of the bankruptcy protection legal system for the construction of a socialist market economy.Establishing and improving the legal system for bankruptcy protection can fill the gaps in China's current socialist market economy system,build a working platform for the market to play a decisive role in resource allocation,and stabilize the basic foundation of China's current economic development by rescuing distressed enterprises and other market entities,promoting high-quality and healthy economic development.