A court in the southern business hub of Shenzhen has approved China’s first personal bankruptcy liquidation, another step forward in building a legal framework that will allow MILLIONS of individuals across the country to reorganize their debts and make a fresh start.
Hu Xuhui, a local resident who didn’t have enough assets to pay her liabilities, was declared insolvent, a process also known in China as bankruptcy liquidation, according to a ruling published Tuesday by the Shenzhen Intermediate People’s Court. She will now be subject to restrictions on luxury spending and work for three years and any new assets she earns or acquires, above an agreed monthly budget for living expenses, will be distributed to creditors. After that, she will be discharged from bankruptcy and the restrictions once the court gives the green light.
In March this year, the “Shenzhen Special Economic Zone Personal Bankruptcy Regulations” were implemented, becoming my country’s first personal bankruptcy regulations. After the implementation of the regulations, the first case of personal bankruptcy reorganization and reconciliation procedures has been decided. This case is the first personal bankruptcy liquidation case ruled by the Shenzhen Intermediate Court.
