On Free Property In Personal Bankruptcy Regimes

A perfect exit mechanism of market entities is indispensable to the sound development of market economy.The existing Bankruptcy law system in China currently consist of the Enterprise Bankruptcy Law of the People’s Republic of China merely,as a result of the long-time absence of the Personal Bankruptcy law,which makes this system imperfect.The Personal Bankruptcy law is made for protecting those who are honest but careless.After the petition in bankruptcy,exempt property plays an significant role in maintaining debtor’s very basic livelihood.The UN guides for Bankruptcy legislation advice debtors may reserve properties that are useful for continual development or belong to person exclusively,so do many countries rules.The theory of exempt property is similar with that of non-distrainable property,according to foreign countries.Consequently,the convergence of these theories matters.It is feasible,according to the convention of Chinese legislation,to determine the categories of exempt property in a enumerative-plus-generalized way,yet authorizing provincial government to determine the reservable value based on local circumstance.The structure of exempt property is twofold.The common ones include properties gained after bankruptcy petition,properties for basic life requirements,properties for development,person relevant properties and properties regarding public order and good custom.The special ones include,properties with high realization cost and low value,Social Security benefits and State Compensation.The exempt property must be applied under strict restriction,therefore personal debt shall not be exempted for the debtor.Bankruptcy planning is void if such act harms creditors’ interests.At the meanwhile,a few words may suffice the necessity of interested parties’ rights of remedy.