What Is an Obligor?

A debtor, as opposed to a "creditor," according to the relevant provisions of the "Contract Law of the People's Republic of China" ^[1] , the debtor is a party in a debt relationship that is obliged to undertake to or does not perform a certain behavior to another party (creditor) on agreed terms . Refers to a person who has an obligation to pay creditors in a debt-relation relationship in accordance with the provisions of laws, contracts, and contracts. As opposed to "creditor". In financial accounting terms, a debtor is an entity or individual who owes money to others.

Debtor, and "

Debtor (debtor), usually refers to the debt or debt

In the debt relationship, the debtor is obliged to undertake to the other party (creditor) a certain behavior or not according to the agreed terms.

In the debt relationship, the debtor is specific, and only the subject of the obligation must be responsible to the creditor to deliver property, provide

Where the debtor transfers all or part of the contract's obligations to a third party,

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Relevant law related to the issue: "People's Republic of China

The majority of debtors is a "majority of creditors" symmetry, which refers to two or more of the debts of the majority of the debtor's burden to the creditor as a certain behavior or not a certain behavior obligation. It can be divided into a majority debtor for joint debt and a majority debtor for joint debt.

The majority of debtors who share a debt share their obligations according to a certain share. Each debtor is only responsible for fulfilling its debts to the creditor with respect to its share of the debt, and matters that have effect on one debtor do not affect other debtors.

Most debtors of joint debts share their obligations. Before the debts are fulfilled, the debt share assumed by each debtor is uncertain. Matters that have effect on one debtor are also valid for other debtors.

"Debtor's property" is the first concept to emerge in the new Corporate Bankruptcy Law. In US bankruptcy law, its synonymous concept is Estate. In German bankruptcy law, it is called Masse. In fact, the debtor's property should include all the debtor's property, including the debtor's interest in assets no matter where they are, whether in court The home country is still in a foreign country, whether or not it is in the possession of the debtor at the start of the procedure, and also includes all tangible assets (movable or immovable) and intangible assets. The use of the concept of "debtor's property" in the new Corporate Bankruptcy Law represents a change in the concept of bankruptcy legislation. This concept not only covers the debtor's property in bankruptcy liquidation procedures, but also includes the debtor's property in bankruptcy settlement procedures and reorganization procedures It can better summarize the different conditions of the debtor's property under the three procedures of liquidation, reconciliation and reorganization, and its connotation is more comprehensive.

A concept closely related to "debtor property" is "bankrupt property". In the field of bankruptcy law in China, the concept of "bankruptcy property" is used in two broad and narrow senses. Bankruptcy property in a broad sense is also called a bankruptcy consortium according to the title of civil law system, and is basically synonymous with "debtor property" in the new bankruptcy law. Bankruptcy property in the narrow sense refers to the property used for liquidation and distribution among creditors after the enterprise is declared bankrupt. The original Corporate Bankruptcy Law (Trial) was a concept of bankruptcy property used in a narrow sense. Article 28 of the Law stipulates that the bankruptcy property is composed of the following assets: all the property of the bankruptcy enterprise when it is declared bankrupt; the property acquired by the bankruptcy enterprise after the bankruptcy declaration and before the end of the bankruptcy proceedings; Other property rights.

The new bankruptcy law makes a clear distinction between "debtor property" and "bankrupt property". Article 30 of the law stipulates that: "All the assets belonging to the debtor when the bankruptcy application is accepted, and the assets obtained by the debtor after the acceptance of the bankruptcy application and before the end of the bankruptcy proceedings, are the debtor's property." After the debtor is declared bankrupt, the debtor is called a bankrupt and the debtor's property is called bankrupt property. " It can be seen that in the new bankruptcy law, bankruptcy property is only used in a narrow sense and refers to property distributed among creditors in the liquidation process. The reason for this distinction is mainly based on the following considerations. In China's previous bankruptcy legal system, bankruptcy liquidation procedures have been dominant, and bankruptcy property has little difference in the broad sense and narrow sense. The concept of bankruptcy property focuses on liquidation distribution. In the new bankruptcy law's new reorganization procedure, which aims at corporate recovery, the assets of the bankrupt enterprise will continue to operate under the management of the debtor or the manager. In a successful reorganization, the creditor must obtain according to the reorganization plan. Debt settlement, the debtor's property is no longer used for liquidation and distribution. Therefore, the reference to "bankruptcy property" at this time cannot accurately cover the debtor's property status under the reorganization procedure.

The special chapter of the new bankruptcy law on the debtor's property emphasizes the special legal status of the debtor's property. According to Chapter 4, after the bankruptcy case is accepted, the property of the original bankrupt enterprise becomes "debtor property", and "debtor property" is no longer a property controlled by the debtor in a general sense, but a specific collection of property with a special legal status. The particularity of this legal status is mainly manifested in four aspects: First, there is a particularity of purpose. The debtor's property exists for the purpose of carrying out and completing the bankruptcy proceedings. Second, the particularity of the debtor's property rights subject. After the debtor's property is transformed into "debtor's property", the de facto right holder of this property is no longer the owner of the original enterprise, but a creditor. Third, the particularity of the subject of property management. According to the new bankruptcy law, the debtor's property is taken over and managed by the administrator. Fourth, there is formal collectiveness. The debtor's property is a general concept of property, including the collection of all assets and rights of the debtor at the time of bankruptcy acceptance and after the acceptance of the bankruptcy case until the end of the bankruptcy proceedings.

Mr. Cheng, a citizen of Changchun, consulted. A friend, Ms. Lin, borrowed 300,000 yuan from Mr. Cheng to invest in expanding the hotel. The loan was for one year. Guarantee, if the loan cannot be repaid at maturity, the property will return to Mr. Cheng, and the property right certificate such as the real estate certificate will be kept by Mr. Cheng. Mr. Cheng asked how safe is such a loan?
Mr. Li, a salesman of Longfang Guarantee Company, pointed out that China's law prohibits the stipulation in the Mortgage Contract that the debtor cannot repay the debt when it expires, and that the creditor can obtain the ownership of the mortgaged property. Such an agreement has no legal effect. If Mr. Cheng wants to protect his rights and interests, he can consider the following opinions:
First, if the parties have not paid off the secured creditor's rights after the payment period has expired, they can negotiate and sign a contract at a discount to obtain ownership of the mortgaged property. Such an agreement for obtaining ownership at a discount after the expiry of the settlement period shall not harm the interests of other subsequent mortgagees and creditors, otherwise the subsequent rights holders may exercise the right of revocation.
Second, the parties can also agree when signing the Mortgage Contract that the mortgagee has not paid off at the expiry of the debt performance period. The mortgagee has the right to directly entrust an auction institution to auction the mortgaged property, which also effectively protects the owner of the mortgaged property or The beneficiary's benefit does not belong to the liquidity contract. ^[3]