China’s first personal bankruptcy case approved in Shenzhen
Published: Jul 19, 2021 04:58 PM
Bankruptcy protection

Bankruptcy protection

Shenzhen Intermediate People's Court in South China's Guangdong Province approved a personal application for bankruptcy protection, which was the first approved personal bankruptcy case after the country's first related law issued in March 2021, Yangcheng Evening News reported on Monday.

Mr Liang is a local entrepreneur in Bluetooth earphone industry whose company went bankrupt due to the unstable sales results and affect of COVID-19 pandemic. His assets and income couldn't pay for the debts of 750,000 yuan ($115,617). He applied for personal bankruptcy protection in March and received formal approval from court on Monday. 

"The approval has an outstanding meaning in China's personal bankruptcy protection field," Li Weimin, director of Beijing Wei Bo Law Firm, told Global Times on Monday.

According to the Shenzhen Special Zone Personal Bankruptcy Regulation issued in March, interests of Mr Liang's loan was exempted and part of his income will be used for repaying his debt. 

"Before the regulation came out, bankrupted individuals who might not be able to repay their debt will be blacklisted in personal credit system," said Li. He noted that the approval had a remarkable meaning and filled the blank of China's personal bankruptcy protection area. 

The Fourth Plenary Session of the 19th Central Committee of the CPC held in 2019 vowed to improve the country's bankruptcy system. Shenzhen Intermediate People's Court stated that the personal bankruptcy regulation gives a chance to the people who are honest but suffer misfortune.  

Global Times