Research On The Exempt Property System In Chinese Personal Bankruptcy

As China’s economy enters a new era of rapid development,the private lending and credit markets are becoming increasingly prosperous.However,due to the imperfect market exit mechanism for natural persons,numerous malignant incidents have emerged,causing a burden on society.Therefore,we should actively promote the establishment of a personal bankruptcy system to facilitate the rational allocation of resources and stimulate market vitality.The biggest difference between the personal bankruptcy system and the general bankruptcy system lies in the protection of the basic rights of debtors as natural persons.Therefore,the exempt property system is the institutional foundation of personal bankruptcy,which enables debtors to maintain their basic livelihood and development during the process of personal bankruptcy while allows creditors to achieve a relatively fair debt settlement.On June 22,2019,relevant government departments jointly issued a notice on "Accelerating the Improvement of the Market Entity Exit Mechanism Reform Program," establishing that China will implement a personal bankruptcy system.As the cornerstone of the personal bankruptcy legal system,the exempt property system has its inherent rationality and should develop in tandem with the personal bankruptcy system.Based on a clarification of the basic concept of the exempt property system,this thesis conducts a comparative analysis of international and regional exemption legislation and puts forward several suggestions for the construction of China’s exempt property system.Regarding the applicable subjects of the exempt property system,the general bankruptcy principle should be applied,that is,all civil subjects unable to repay their debts can apply for personal bankruptcy and submit an exempt property list,regardless of whether the parties are engaged in commercial activities.The determination of the scope of exempt property should focus on protecting the debtor’s right to subsistence and development,adopting a legislative model that combines general and enumerative methods.As for the related procedures of the exemption system,it is necessary to establish and improve out-of-court debt settlement procedures and objection procedures for exempt property.