Growing Debt Levels Lead to Personal Bankruptcy Laws

Caixin: Shenzhen Mulls China’s First Personal Bankruptcy Legislation

China may soon have its first personal bankruptcy legislation, with a draft regulation released on Tuesday by the southern city of Shenzhen providing a way out for individuals saddled with debts they cannot pay off.

China enacted an Enterprise Bankruptcy Law in 1986, but did not include a personal bankruptcy ordinance, leading some law experts to say the country only has “half a bankruptcy law.” The Shenzhen draft rules could change that for people living in the business hub that cannot afford payments on their debts, allowing them to apply for restructuring or liquidation and have part of their debts forgiven by creditors. China’s central government backed the establishment of a personal bankruptcy system in a document issued last year.

See also: 深圳经济特区个人破产条例公开征求意见 and 关于《深圳经济特区个人破产条例（征求意见稿）》公开征求意见的公告