On Exemptions

It has been a general opinion in academic circles of our country that bankruptcy law should be available to individuals. As regulative objects stipulated by Enterprise Bankruptcy and Reorganization Law of PRC (draft , Jan 2001) has enlarged to partnership enterprises and partners, entirely-owned enterprises and investors, and other economic associations for making profits, study on personal bankruptcy is of both academic and practical meanings. Exemptions play an important role in personal bankruptcy and represent the development status of human rights and welfares in a country. Although many countries have established personal bankruptcy system, relevant study on exemptions lags behind. It is general practice in many civil law countries that there are no direct stipulations in bankruptcy law and similar stipulations in civil procedural law or civil executive law have to be quoted. Therefore, exemptions take the lead in bankruptcy academic circles, especially in civil law countries. This article is to make an all-sided study on exemptions and help the systematic construction of exemptions in our bankruptcy. This article includes six parts:Part â… , definition of exemptions. This part firstly states the conditions of exemptions and points out that exemptions are only applied to individuals, then analyses the relations between exemptions and recall property, securities or unexecutable property in civil procedure, and gives a definition ofexemptions at last.Part â…¡, significances of exemptions. This part states four significances of exemptions: exemptions guarantee the living and development of debtors and relatives fostered by debtors, manifest national policies and help debtors' new start, meet the needs of economical regularities and reflect the characters of social culture.Part â…¢, correlative procedures of exemptions. This part introduces some focuses in correlative procedure of exemptions based on legislations and cases in America, such as subjects of exemptions, applying procedure of exemptions, objection to exemptions, abandonment of exemptions, retrial of exemptions, and effects of exemptions adjudication and exceptions. Part â…£, scope of exemptions. This part firstly states legislations of typical countries, then presents the basic standard of scope of exemptions, and puts forward author's suggestions on legislative model and specific design.Part â…¤, bankruptcy planning. This part analyses bankruptcy planning and suggests it should not be forbidden unless property of bankruptcy planning is so large that it will tort creditors. Part â…¥, exemptions and leins. This part explains relations between exemptions and leins and suggests that leins on exemptions be invalid except purchase money security interest.