The Scope Of Free Property In Personal Bankruptcy

The biggest difference between personal bankruptcy and corporate bankruptcy is that the individual personality of the debtors will not be eliminated by the insolvency proceedings.As a member of society,the individual debtors need to survive after the end of the bankruptcy,which requires preserving a portion of property of the estate to the debtor so that he could maintain a basic livelihood for some time.The property that preserved by the debtor is the exempt property.The exemption is one of the most important systems of the personal bankruptcy,and how to delimit the scope of exempt property is the core.There are three points should be noted about delimiting the scope of exempt property: Firstly,the value of the exempt property must be confined to the minimum necessary to protect individual rights of the debtor and his family.This is the fundamental principle to determine the scope of the exempt property.Secondly,there are some types of the exempt property that regulated in almost every country,but it doesn't mean that all debtors have access to the same kind of exempt property,because it is related to the factors of family living conditions and liabilities of the debtor.Even debtors obtain the same kind of property,the upper limit of the value that the debtor can exempt is different from country to country,for the reason of different levels of economical development.Thirdly,Since the scope of the exempt property is decided deliberately,there are doubts about whether the property like homestead or pension plan can be regarded as the exempt property and whether the behavior like using nonexempt assets to purchase or improve exempt property on the eve of bankruptcy is effective or not,the answer is rely on the combination of the fundamental legal relation and the principle of how to determine the scope of the exempt property.