Research On The Legal System Of Personal Bankruptcy Exemption In China

Personal bankruptcy exemption means that when a natural person debtor files for bankruptcy and enters into judicial liquidation for the distribution of the bankruptcy estate in satisfaction,the debtor is relieved of the responsibility to pay the remaining outstanding debts and the creditor-debtor relationship is legally extinguished.Bankruptcy proceedings are a general discharge of the debtor’s debts,and the exemption system is the greatest incentive for the debtor to enter bankruptcy proceedings.The development of the personal bankruptcy exemption system has so far combined multidisciplinary theoretical research and formed theoretical foundations such as debtor cooperation theory,debt forgiveness and humanitarian theory,impulse control and incomplete inspiration theory,and social utility theory.Along with the continuous research,the legal value embodied in the personal bankruptcy exemption has been gradually reflected in the continuous improvement of the system.At the level of justice value,the personal bankruptcy exemption system can make the debtor get out of the debt burden and at the same time make the creditors get more liquidation,balance the interests of both sides of the debt-credit relationship to the maximum extent,make the social resources reach a more just distribution,and the bankrupt debtors who are already obviously in a disadvantageous position can get social security;at the level of order value,the debtor has the hope to leave the debt quagmire to be able to In terms of order value,debtors have the hope to leave the debt quagmire so that they can reduce the possibility of going to extremes due to the debt burden and will not destroy the social order,and the perfection of the market exit mechanism allows unqualified economic subjects to have an exit path,so that the economic order can be more stable;in terms of efficiency value,the personal bankruptcy exemption system can increase the path of personal debt clearance,so that judicial resources can be transferred from cases that cannot be effectively implemented to other cases,so that judicial resources can be more efficiently allocated.In terms of efficiency value,the personal bankruptcy exemption system can increase the path of personal debt liquidation,allowing judicial resources to be diverted from cases that cannot be effectively enforced to other cases,so that judicial resources can be allocated more efficiently.Compared to corporate bankruptcy,the personal bankruptcy exemption system covers a wider range of debts,including both business debts incurred by individuals in the course of their commercial activities and debts incurred in the course of their daily consumption,which can be legally exempted from repayment as long as there are no exceptions to the exemption,but these debts are not directly extinguished as in the case of corporate bankruptcy.After the bankruptcy of an individual,his or her subjective status remains,and these exempted debts become debts of nature,but they cannot be reconfirmed by the court to be enforceable.At the same time,it is precisely because the natural person’s subjective status remains that his or her creditworthiness is limited in the event of inability to pay debts,until after the discharge is granted,when his or her creditworthiness should be gradually restored in order for the debtor to be truly "reborn," but the current means of restoration are incomplete.For the personal bankruptcy exemption system to be established in China,it should combine the practical experience of the pilot personal bankruptcy-like procedures and personal bankruptcy procedures in Jiangsu,Zhejiang and Shenzhen,balance the two major needs of preventing malicious debt evasion and debtors restarting their lives,choose a court-centered licensing exemption model,impose more strict restrictions on the application of the exemption at the initial stage,and then in the future,according to the actual situation of the operation of the system The court should choose to relax the exemption in the initial stage and then relax it in the future according to the actual situation of the system.At the same time,it is necessary to strengthen the construction of the supporting system,improve the personal property statistics system,the personal credit management system and the bankruptcy administrator system,and use the personal credit repair in the personal credit management system to motivate debtors to improve their debt settlement rate.