Research on the Theoretical Basis of Limitations on Personal Bankruptcy Exemptions

The exemption system is the core of modern personal bankruptcy law, but it should be clear that the bankruptcy exemption is not a system that exclusively serves the debtor, but it is the result of balancing the interests of the creditors, the debtor and even the whole society, so it is indispensable to construct the personal bankruptcy exemption system and to make certain limitations on the exemption. The theoretical analysis of the limitation of personal bankruptcy exemption is carried out by elaborating on the theory of debtor cooperation, humanitarian theory and social utility theory. The theory of debtor cooperation is based on the background that the society encourages the bankrupt to cooperate actively and severely cracks down on malicious debts, when it comes to humanitarianism, the personal bankruptcy exemption legislation obviously changes from creditor standard to pay equal attention to the interests of creditors and debtors, and increases the obligation for creditors to respect the survival and development of debtors and protect the personal dignity of debtors. Then the theory of social utility shows that creditor's rights should be subject to the overall interests of society and be restricted. The legislation of individual bankruptcy has changed from individual standard to social standard, and the understanding of the legislature on individual bankruptcy has gradually deepened.