| dc.description.abstract | The highly developed economy and society have made the debt clearance system an indispensable part of modern legal societies. Unrestrained consumption may burden consumers with debts that they are unable to repay, ultimately leading to more social problems. The ′Consumer Debt Clearance Statute′ was born in response to this situation, aiming to safeguard consumers by providing opportunities for economic reconstruction while maintaining overall social and economic stability.
The liquidation process is simpler and quicker in execution and duration compared to the rehabilitation process. However, despite this, there is a substantial trend where the number of applications for rehabilitation process outweighs those for liquidation, which is a matter of considerable puzzlement in this paper. Therefore, the purpose of this study is to investigate why the majority of consumers in our country tend to opt for the rehabilitation process when facing debt clearance needs, causing a significant imbalance between the number of rehabilitation and liquidation process applications, contrary to the situation in the United States. Through this research, the aim is to propose useful suggestions for the current regulations and operational practices, ensuring fair treatment of debtors and creditors while increasing the number of applications for the liquidation process, balancing the number of applications between rehabilitation and liquidation processes.
This paper will compare the design and operation of the United States Bankruptcy Code Chapter 7 and Chapter 13 with our country′s system. Through a questionnaire survey, the aim is to understand the level of awareness among our citizens regarding debt relief laws, using logistic regression to analyze significant personal attributes affecting the choice of processes. Finally, by observing and analyzing the liquidation process through comments from experts and scholars in the field of consumer debt clearance systems and considering our national conditions, this paper will propose legislative amendments to the Consumer Debt Clearance Statute.
Through these methods, this paper concludes that the gender, age group, and employment status of debtors significantly influence their choice of processes. Furthermore, it has been found that our country′s liquidation process has many disadvantages for debtors in terms of design and practical operation, reducing the willingness to apply for the liquidation process. Even though the liquidation process is the simplest and fastest method of debt clearance, debtors still tend to choose the rehabilitation process in order to effectively obtain debt relief.
The Consumer Debt Clearance Statute is a massively used regulation in our country′s debt clearance system. Under the dual freedom of choice between rehabilitation and liquidation processes, debtors should be given genuine freedom of choice rather than being forced to choose an alternative process due to flaws in the system′s design. It is hoped that through the analysis and discussion in this paper, a new perspective will emerge for our country′s Consumer Debt Clearance Statute, realizing a win-win-win situation for debtors, creditors, and the overall economic society. | en_US |