The passage of Consumer Insolvency Code, which has officially come in effect since this April, has brought insolvency law of this country into a new era. In the public’s eager anticipation, it was rapidly passed in the hope of coping with the consumer debt, providing open channels of communication for the creditor and the debtor and helping insolvency debtors get back on their feet. However, the way it deals with security claim will have an impact on its own effect, and directly defeat the purpose of the special clause of debtors’ residence loan. The present article aims to probe into the essence of security claim and account for its role in the insolvency law; in addition, this article, by drawing the examples and experiences from the practice of Bankruptcy Code in the U.S.A., provides some a critique and some suggestions for Consumer Insolvency Code and the current Bill of Insolvency Law.