Bankruptcy protection

Shenzhen in South China's Guangdong Province has established a linkage mechanism between individual bankruptcy and social credit, with personal bankruptcy information set to be publicized and shared on multiple platforms to strengthen credit control and supervision and reduce bankruptcy processing cost, according to media reports. 

The Implementation Opinions for establishing the linkage mechanism jointly issued by local authorities clarified multiple personal information into the scope of credit information and public disclosure, including the state of personal bankruptcy, the credit commitments made by relevant entities participating in bankruptcy procedures in good faith, and personal bankruptcy-related restrictions, penalties, and breach of trust information, local media sznwes.com reported on Tuesday.

To enhance the efficiency of personal bankruptcy processing and accurately grasp the debtor's credit status, the Implementation Opinions also proposed to establish a multi-channel collection and multi-platform sharing mechanism, through the sharing platform of government information resources to exchange personal bankruptcy and debtors' credit information in order to effectively reduce the cost of processing a bankruptcy.

At the same time, a credit verification synergy system should be set up to allow relevant authorities to access debtors' credit information when handling personal bankruptcy cases. 

Moreover, the Implementation Opinions took the lead in establishing a credit control system for actions of breach of trust to prevent abuse of the personal bankruptcy system.  The credit control system requires debtors and bankruptcy administrators to sign commitments to ensure both sides to participate in the bankruptcy proceedings in good faith. The performance status will be recorded in the public credit information management system and included in the personal credit record.

Shenzhen Intermediate People's Court approved a personal application for bankruptcy protection in July, which was the first approved personal bankruptcy case after the country's first related law issued in March 2021, per media reports. 

Global Times