Definition of the scope of property exempted from the localized personal insolvency regime

Abstract

With the development of commodity economy, borrowing and lending consumption is more and more common. In this consumption pattern, the debtor is very easy to fall into the vicious circle of insolvency. In the individual, the society is a great impediment to the development of exempted property is the most constructive, one of the most innovative approach to personal bankruptcy, its emergence helps the debtor to get rid of the debt dilemma, and promotes a fresh cycle of the social economy. At this point, the definition of the scope of the exempted property is crucial, and it is essentially a product of the game between creditors and debtors around their own interests. Since there are differences in defining the scope of exempted property in different countries due to the level of economic development, politics, history and other factors, it is necessary to draw on extraterritorial legislation and base on China's national conditions when constructing the system of defining the scope of exempted property in China in order to effectively safeguard the balance between the interests of the debtor and the creditors. The main purpose of the exemption system is to ensure that the debtor's basic living and production activities can be sustained. Based on this purpose, balance and flexibility fit the necessary nature of our national conditions, while at the same time safeguarding the property of the debtor's personal exclusivity, in order to respect the basic rights of the debtor as an independent individual. There are a number of possible routes for specifying the scope of exempted property. One is to adopt a single amount, directly setting a fixed amount as the standard amount of exempted property. The second is to combine the type of property with the amount, starting from the type of property and matching the corresponding amount with the characteristics of different types of property. The third is to set a special amount for specific properties, that is, for some special properties, special planning for a specific amount of range. In practical application, each country should be allowed to flexibly choose the method of determining the amount that suits the actual situation of the country based on its own national conditions, legal system and socio-economic situation and other factors.