The Legal Effect of Creditor's Right of revocation: A Reflection on the System and the Search for a Way Out

Abstract

The current market economic activities are quite active, the legal relationship of credit and debt is intricate and complex, and the malicious debt evasion behavior of some debtors brings certain hidden dangers to the safety of market economic transactions. The creditor’s revocation system has become a necessary means to ensure the realization of the interests of creditors, but some defects have been exposed in the judicial practice process. In terms of the attribution of revocation effect, the currently adopted "banked principle" may cause a decrease in the enthusiasm of the revocator and eventually damage the interests of all relevant creditors; at the same time, the boundary between the legal effect of creditor's revocation and the legal effect of ordinary revocation is not clear, so it is difficult to give full play to its effectiveness. This paper analyzes that the conflict between "common interest" and "private interest" and the complexity of the litigation form caused by absolute invalidation are the deep-seated reasons for the existing defects. In this paper, the solution to the above problems is found from two perspectives: the principle of property distribution in enforcement as the basis for choosing the target position of the right of revocation and the enforcement procedure of the main claim to realize the right of revocation.