The Limitation Of Legality And Reasonable Limitation Of Security Interests In Bankruptcy Procedures

Although the priority of property rights over claims is a basic civil law principle,overemphasizing the priority of security property rights may make the legislative objectives of the bankruptcy law useless.Therefore,security rights in bankruptcy procedures need to be limited.Article 75 of the "Enterprise Bankruptcy Law" in China stipulates the suspension of the realization of the security in the bankruptcy and reorganization proceedings.This resolves the contradiction between the separate value of the guarantee and the overall value of the bankruptcy property,which is conducive to maximizing the debtor’s property.On the other hand,it is also conducive to safeguarding the interests of ordinary creditors,raising the overall bankruptcy liquidation rate,and realizing a fair discharge of the bankruptcy law.purpose.However,the provisions of Article 75 itself are not yet clear and are still to be improved.There is also some controversy as to whether it is necessary to apply the provisions of this Article in liquidation proceedings.This paper seeks to refer to the United States automatic suspension system,the German bankruptcy law and the Japanese measures for the protection of industrial output,combined with the "United Nations Legislative Guide on Secured Transactions",discusses the reasons and the validity of restrictions on the security rights in the bankruptcy proceedings and how they should be reasonably limited..This article is divided into four parts.The first section outlines the limited legitimacy of security interest in bankruptcy proceedings.The property rights of security and bankruptcy are two systems that compete with each other.Most property in bankruptcy procedures have been set up to guarantee.There is a contradiction between the order of liquidation of secured creditors and ordinary creditors,and there is also a difference between the individual value of collateral and the overall value of the bankruptcy property.Contradictions:The restriction of security interest in bankruptcy proceedings is mainly manifested in the temporary suspension of the exercise of the right to liquidation.The second part explains the operating mode of suspension of the realization of collateral in China’s bankruptcy law.The current bankruptcy law only clearly stipulates the moratorium on the realisation of collateral in the reorganization process,and it is unclear whether the provisions for the application of settlement procedures and settlement procedures are applicable.Moreover,the regulations on the start time,application scope,suspension period,and restoration and compensation still need to be further improved.The third part introduces the investigation of the suspension system of foreign liquidation,mainly referring to the automatic suspension system of the United States,the German bankruptcy law,and the measures for the preservation of production in Japan.These national legislations regulate the restrictions on the security right in the bankruptcy law and are worth referring to.The fourth part discusses the reasonable limitation of the security property rights in bankruptcy proceedings in China by referr:ing to the Chapter "Influence of Bankruptcy on the Security Law of the United Nations Legislation on Secured Transactions".First,discuss the limitations and improvements in the current legislative and bankruptcy reorganization.Then analyze whether it is appropriate to apply this clause directly to the liquidation process.Finally,discuss how to limit the security interest in the liquidation process and increase the bankruptcy liquidation rate.