Don t be afraid of cheating creditors right of revocation

Mondo Social Updated on 2024-02-01

According to Article 538 of the Civil Code, if the debtor disposes of the property rights and interests free of charge by waiving its creditor's rights, waiving the guarantee of its creditor's rights, transferring property free of charge, etc., or maliciously prolongs the performance period of its due creditor's rights, thereby affecting the realization of the creditor's creditor's rights, the creditor may request the people's court to revoke the debtor's acts.

The purpose of this provision is to protect the legitimate rights and interests of creditors and prevent debtors from infringing on the interests of creditors by means of fraud and malice. If the debtor disposes of the property rights and interests free of charge by waiving the creditor's rights, transferring the property free of charge, etc., or maliciously extending the performance period of the due creditor's rights, these actions may damage the rights and interests of the creditor, so the creditor has the right to request the court to revoke these acts in order to protect its own interests.

For example, if the debtor evades the debt by transferring the property without compensation, or deliberately extends the debt performance period so that the creditor cannot realize its rights and interests in a timely manner, the creditor may apply to the court to rescind the debtor's acts to ensure that its legitimate rights and interests are not harmed.

Therefore, Article 538 of the Civil Code provides an effective remedy for creditors and protects their legitimate rights and interests.

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