What Is a Judgment Debtor's Exam?

The sub-debtor refers to the debtor's debtor, which is usually called a "third party" in theory of civil law.

Sub-debtor

The sub-debtor refers to the debtor's debtor, which is usually called a "third party" in theory of civil law.

A subrogation lawsuit involves a dispute between a creditor and a debtor,

Article 20 of the Supreme People's Court's Interpretation of Several Issues concerning the Application of the Contract Law of the People's Republic of China (1) stipulates that if the subrogation lawsuit filed by a creditor against a sub-debtor is determined by the court, the sub-debtor shall When the creditor fulfills the obligation to pay off, the corresponding creditor-debt relationship between the creditor and the debtor, the debtor and the sub-debtor shall be eliminated. This stipulation shows that once the subrogation lawsuit by the creditor to exercise the creditor's subrogation right is established by the court, the sub-debtor has the obligation and responsibility to directly settle the creditor with respect to the confirmed amount of the debt, and the original corresponding debt-debt relationship will be eliminated. A new type of creditor-debt relationship has been formed between creditors and sub-debtors and confirmed by the effective judgment. This is obviously a transfer of debt, that is, the amount of the debt owed by the debtor to the creditor is passed on to the debtor to pay the creditor the amount of the debt. In the creditor's subrogation litigation, the creditor, while obtaining the right to settle the claim to the sub-debtor, lost the original claim and settlement right to the debtor. In this way, the ultimate consequence of the creditor's exercise of the right of subrogation not only did not extend the creditor's liability property to the debtor's liability property on the basis of the debtor's liability property, but also put the realization of the creditor's claim right at a new risk situation, or even increased 2. The credit risk of creditors has been enlarged.

Because the creditor exercises the subrogation right of the creditor for subrogation litigation, the effect of the creditor's right will not necessarily be obtained once the judgment is confirmed, that is, the sub-debtor does not necessarily have the property and ability to pay the debt. Therefore, in order to fully and maximally protect the rights of creditors, while the creditor's exercise of subrogation lawsuit confirms that the sub-debtor is liable to the creditor for the amount of the debt, it should also be determined that the debtor is jointly and severally liable for the amount of the debt. In other words, while the creditor obtains the right of the sub-debtor to pay the debt to him, the debtor does not lose his original payment responsibility, which is in line with the legislative intent of the subrogation system.

Paragraph 2 of Article 73 of the Contract Law stipulates that the scope of exercise of the right of subrogation is limited to the creditor's claims. This includes that the amount of the creditor's claim for subrogation cannot exceed the amount of the creditor's right to the debtor, and cannot exceed the amount of the creditor's creditor's right to the sub-debtor. In this way, within the scope of the common debt, the debtor and the sub-debtor should bear the responsibility of the creditor to pay the debt in full. The establishment of the subrogation system also sets up the sub-debtors who have a joint relationship with the debtors to assume debt liabilities to the creditors, which is essentially a statutory joint liability to ensure the realization of the secured creditors' claims. Therefore, in the subrogation litigation, the debtor shall be jointly and severally liable for the amount confirmed in the subrogation litigation. The debtor cannot use the court's judgment in the subrogation lawsuit to subordinate the debtor to settle the debt and excuse it from its original debt settlement responsibility.