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Personal Bankruptcy Ordinance of Shenzhen Special Economic Zone, has come into effect on 1st of March, 2021. The highlights are as follows:202131
* Where a natural person, who lives in the Shenzhen Special Economic Zone and has participated in the social insurance of Shenzhen for consecutive three years or more, loses the ability to pay off his/her debts due to production, operation or living consumption, or his/her assets are insufficient to pay off all the debts, he/she may conduct bankruptcy liquidation, reorganization or resettlement in accordance with this Ordinance.
* Any debtor in conformity with the provisions hereof may apply for bankruptcy to a people's court, including application for bankruptcy liquidation, reorganization and resettlement.
* Where a debtor is unable to pay off due debts, creditors who individually or jointly hold due claims in the amount of more than CNY500,000 against the debtor may apply to a people's court for bankruptcy liquidation of the debtor.
* From the day on which the people's court rules to accept an application for bankruptcy to the day on which the court rules to discharge the debtor's outstanding debts according to this Ordinance, the debtor shall bear the following obligations:(I) submitting or supplementing the relevant materials as required by the people's court, the bankruptcy authority and the administrator, and cooperating in the investigation;(II) sitting in on the creditors' meeting and accepting inquiries;(III) promptly reporting to the bankruptcy authority and the administrator when there is any change in the debtor's personal information such as name, contact details, or address, or when the debtor needs to leave his/her domicile;(IV) not to leave the country without permission of the people's court;(V) timely registering and reporting major events of personal bankruptcy to the people's court and the bankruptcy authority, including bankruptcy application, property and debt status, reorganization plan or resettlement agreement, and income and consumption during the bankruptcy period; and(VI) when borrowing more than 1,000 yuan or applying for a credit line of equivalent value, the debtor shall declare its bankruptcy status to the lender or the party granting credit to him/her; and(VII) cooperating with the people's court, the bankruptcy authority and the administrator in other work related to the bankruptcy proceedings. 
* From the date when the people's court makes a decision on restricting the debtor's acts until the date when the people's court makes a decision on lifting the restrictions on the debtor's acts, the debtor may not have the following consumption acts except for those really necessary for daily life or work:(I) choosing business class or first-class seat on an airplane, soft sleeper in a train, second class or above on a ship, or first class or above on a high-speed train or any other CRH train when taking transportation vehicles;(II) consumption at night clubs, golf courses, hotels, restaurants or other places that are above three stars;(III) purchasing any real estate or motor vehicle;(IV) building, expanding and fitting up houses;(V) affording private schools with high tuition fees for his/her children;(VI) renting high-grade office buildings, hotels, apartments or other office premises;(VII) paying a high premium to purchase insurance wealth management products; and(VIII) other consumption acts not necessary in daily life or work. 
* The debtor shall, within 15 days as of the day when the ruling on the application for bankruptcy is served by the people's court, truthfully declare the property and rights and interests under the names of himself/herself, his/her spouse, minor children and other close relatives living together to the people's court and the administrator:(I) cash assets such as wage income, income from personal services, bank deposits, cash, funds in the accounts with a third-party payment platform, and funds in housing provident fund account;(II) the property rights and interests enjoyed by investing in or otherwise holding stocks, funds, investment-typed insurance and other financial products and wealth management products;(III) property rights and interests enjoyed by investments in domestic and overseas non-listed companies limited by shares, limited liability companies, registered individual businesses, sole proprietorship enterprises, partnership enterprises, etc.;(IV) such property rights and interests as intellectual property, right to benefit from trust and dividend from collective economic organization;(V) the land use right, houses and other property owned or jointly owned by the debtor;(VI) transportation vehicles, machinery and equipment, products, raw materials and other property;(VII) valuable articles such as calligraphy and paintings collected by the debtor;(VIII) the property rights and interests enjoyed by the debtor in accordance with the law based on inheritance, gift, holding on commission and others;(IX) the debtor's expected property and property rights and interests before the application for bankruptcy is accepted; and(X) other property and rights and interests on property with disposal value.The debtor's overseas property and property rights and interests mentioned in the preceding paragraph shall also be declared truthfully.   *The period of probation for the discharge of a debtor's outstanding debts (hereinafter the period of probation) shall be three years as of the day when the people's court declares the debtor bankrupt.   
* During the period of probation, the debtor shall register and declare his/her personal income, expenditure, property conditions and other information in the bankruptcy information system of the bankruptcy authority on a monthly basis.The administrator is responsible for supervising the debtor's relevant acts during the period of probation, reviewing the annual reports on personal income, expenditure and property submitted by the debtor, and taking over and distributing the debtor's annually added or newly discovered bankruptcy property in accordance with the bankruptcy property distribution plan.
*Upon expiration of the period of probation, the debtor may, in accordance with the relevant provisions hereof, apply to the people's court for discharge of his/its outstanding debts.Where the debtor falls under any of the following circumstances, the period of probation shall be deemed to have expired:(I) where the debtor pays off the remaining debts or the creditor exempts the debtor from all the liability for repayment of the debts;(II) where the debtor repays two-thirds or more of the remaining debts, and the period of probation has passed one year; and(III) where the debtor repays more than one third but less than two thirds of the remaining debts, and the period of probation has passed two years.
*A debtor with expected future income may apply to the people's court for reorganization in accordance with this Ordinance.
* The debtor may directly apply to the people 's court for resettlement in accordance with This Ordinance. 


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The First Personal Bankruptcy Ordinance in China(Shenzhen)

Click LegalTips

to follow us

You may also feel interested in:Administrative Measures of International Students by SchoolsWhat the Law Says Regarding Asset During Marriage?How to Make a Legally Binding & Enforceable Will in China?
Personal Bankruptcy Ordinance of Shenzhen Special Economic Zone, has come into effect on 1st of March, 2021. The highlights are as follows:202131
* Where a natural person, who lives in the Shenzhen Special Economic Zone and has participated in the social insurance of Shenzhen for consecutive three years or more, loses the ability to pay off his/her debts due to production, operation or living consumption, or his/her assets are insufficient to pay off all the debts, he/she may conduct bankruptcy liquidation, reorganization or resettlement in accordance with this Ordinance.
* Any debtor in conformity with the provisions hereof may apply for bankruptcy to a people's court, including application for bankruptcy liquidation, reorganization and resettlement.
* Where a debtor is unable to pay off due debts, creditors who individually or jointly hold due claims in the amount of more than CNY500,000 against the debtor may apply to a people's court for bankruptcy liquidation of the debtor.
* From the day on which the people's court rules to accept an application for bankruptcy to the day on which the court rules to discharge the debtor's outstanding debts according to this Ordinance, the debtor shall bear the following obligations:(I) submitting or supplementing the relevant materials as required by the people's court, the bankruptcy authority and the administrator, and cooperating in the investigation;(II) sitting in on the creditors' meeting and accepting inquiries;(III) promptly reporting to the bankruptcy authority and the administrator when there is any change in the debtor's personal information such as name, contact details, or address, or when the debtor needs to leave his/her domicile;(IV) not to leave the country without permission of the people's court;(V) timely registering and reporting major events of personal bankruptcy to the people's court and the bankruptcy authority, including bankruptcy application, property and debt status, reorganization plan or resettlement agreement, and income and consumption during the bankruptcy period; and(VI) when borrowing more than 1,000 yuan or applying for a credit line of equivalent value, the debtor shall declare its bankruptcy status to the lender or the party granting credit to him/her; and(VII) cooperating with the people's court, the bankruptcy authority and the administrator in other work related to the bankruptcy proceedings. 
* From the date when the people's court makes a decision on restricting the debtor's acts until the date when the people's court makes a decision on lifting the restrictions on the debtor's acts, the debtor may not have the following consumption acts except for those really necessary for daily life or work:(I) choosing business class or first-class seat on an airplane, soft sleeper in a train, second class or above on a ship, or first class or above on a high-speed train or any other CRH train when taking transportation vehicles;(II) consumption at night clubs, golf courses, hotels, restaurants or other places that are above three stars;(III) purchasing any real estate or motor vehicle;(IV) building, expanding and fitting up houses;(V) affording private schools with high tuition fees for his/her children;(VI) renting high-grade office buildings, hotels, apartments or other office premises;(VII) paying a high premium to purchase insurance wealth management products; and(VIII) other consumption acts not necessary in daily life or work. 
* The debtor shall, within 15 days as of the day when the ruling on the application for bankruptcy is served by the people's court, truthfully declare the property and rights and interests under the names of himself/herself, his/her spouse, minor children and other close relatives living together to the people's court and the administrator:(I) cash assets such as wage income, income from personal services, bank deposits, cash, funds in the accounts with a third-party payment platform, and funds in housing provident fund account;(II) the property rights and interests enjoyed by investing in or otherwise holding stocks, funds, investment-typed insurance and other financial products and wealth management products;(III) property rights and interests enjoyed by investments in domestic and overseas non-listed companies limited by shares, limited liability companies, registered individual businesses, sole proprietorship enterprises, partnership enterprises, etc.;(IV) such property rights and interests as intellectual property, right to benefit from trust and dividend from collective economic organization;(V) the land use right, houses and other property owned or jointly owned by the debtor;(VI) transportation vehicles, machinery and equipment, products, raw materials and other property;(VII) valuable articles such as calligraphy and paintings collected by the debtor;(VIII) the property rights and interests enjoyed by the debtor in accordance with the law based on inheritance, gift, holding on commission and others;(IX) the debtor's expected property and property rights and interests before the application for bankruptcy is accepted; and(X) other property and rights and interests on property with disposal value.The debtor's overseas property and property rights and interests mentioned in the preceding paragraph shall also be declared truthfully.   *The period of probation for the discharge of a debtor's outstanding debts (hereinafter the period of probation) shall be three years as of the day when the people's court declares the debtor bankrupt.   
* During the period of probation, the debtor shall register and declare his/her personal income, expenditure, property conditions and other information in the bankruptcy information system of the bankruptcy authority on a monthly basis.The administrator is responsible for supervising the debtor's relevant acts during the period of probation, reviewing the annual reports on personal income, expenditure and property submitted by the debtor, and taking over and distributing the debtor's annually added or newly discovered bankruptcy property in accordance with the bankruptcy property distribution plan.
*Upon expiration of the period of probation, the debtor may, in accordance with the relevant provisions hereof, apply to the people's court for discharge of his/its outstanding debts.Where the debtor falls under any of the following circumstances, the period of probation shall be deemed to have expired:(I) where the debtor pays off the remaining debts or the creditor exempts the debtor from all the liability for repayment of the debts;(II) where the debtor repays two-thirds or more of the remaining debts, and the period of probation has passed one year; and(III) where the debtor repays more than one third but less than two thirds of the remaining debts, and the period of probation has passed two years.
*A debtor with expected future income may apply to the people's court for reorganization in accordance with this Ordinance.
* The debtor may directly apply to the people 's court for resettlement in accordance with This Ordinance. 


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