If the enterprise's capital is not insolvent, it can apply to the court for bankruptcy; personal debts are too much to repay, but they cannot be resolved in the same way. However, this status quo is changing.

  "Shenzhen Special Economic Zone Personal Bankruptcy Regulations (Draft for Comment)" recently publicly solicited opinions. As my country's first personal bankruptcy legislation, it is possible for "honest and unfortunate" debtors to get out of the "debt quagmire" through personal bankruptcy.

  Shenzhen is a fertile ground for innovation and entrepreneurship. In recent years, in addition to self-employed individuals, a large number of natural persons have directly participated in commercial activities in the name of individuals. Once these commercial entities encounter market risks, they need to bear unlimited debt liability in the name of individuals. They cannot obtain the same bankruptcy protection as enterprises and cannot withdraw and regenerate from the market.

  Wu Delin, Secretary of the Party Committee and Professor of Harbin Institute of Technology (Shenzhen), believes that the personal bankruptcy system is a relief exit mechanism due to a mature market economic environment. Shenzhen is the first to establish a personal bankruptcy system and improve the market exit mechanism, which can stimulate market enthusiasm for entrepreneurs and allow innovation and entrepreneurship. Become an important driving force for Shenzhen's economic development.

  According to the "Draft for Comment", natural persons who have lived in Shenzhen and participated in Shenzhen Social Security for three consecutive years may have bankruptcy liquidation if their assets are insufficient to pay off all debts or have a significant lack of solvency due to production, operation and living consumption. If it is illegal operation or excessive consumption leads to failure to pay off debt, it is not applicable.

  Who has the right to apply for personal bankruptcy? First, the eligible debtor can apply; second, when the debtor is unable to pay off the debt, creditors who individually or jointly hold debts of more than 500,000 yuan to the debtor can apply to the court for bankruptcy liquidation of the debtor.

  Personal bankruptcy mainly takes two forms: reorganization and liquidation. Reorganization generally applies to people with a more stable and continuous source of income, who are able to repay a certain percentage of debt over a period of time. Debtors can also obtain more relaxed restrictions than liquidation and can manage their own property and business affairs under supervision. Liquidation means that all existing assets are used to pay off all debts, and their rights will be more restricted while debts are waived.

  According to common international practice, the debtor who enters the bankruptcy proceedings will be subject to relevant behavior restrictions. Strictly restricted high-consumption behaviors include not being able to fly in business class, first class, soft sleeper trains, second-class and above cabins for trains, and first-class seats for EMU trains; and not in hotels, hotels, nightclubs, golf courses and other places with more than three stars Consumption; it is not allowed to purchase real estate, motor vehicles and other types of behavior. In addition, the debtor's professional qualifications will be restricted.

  The debtor shall implement bankruptcy liquidation according to law, and after a certain period of exemption inspection, it may apply for the exemption of the remaining debts and be reborn. The "Exposure Draft" stipulates that the period of exemption inspection shall be 3 years, starting from the day the court declares the debtor bankrupt.

  However, not all debts can be forgiven. Compensation for infringement on the body of others, compensation for property damage resulting from malicious infringement, alimony, alimony, fines, fines, and confiscation of property based on legal status relationships are indebted debts.

  Whether the personal bankruptcy system will be used by "Lao Lai" to evade debts maliciously is the focus of social concern. The relevant person in charge of the Standing Committee of the Shenzhen Municipal People's Congress said that the personal bankruptcy system is not only a tool for malicious debt evasion, but is conducive to combating malicious debt evasion. Personal bankruptcy requires the debtor to truthfully declare the situation of the property, and has a strict review mechanism to pay off the debt fairly and effectively. These interlocking system designs will give honest people a chance to "resurrect" and will also allow dishonest people. Taste it all.

  Wu Delin said that what needs to be emphasized is that while establishing an individual bankruptcy system, it is also necessary to simultaneously improve the legal system related to personal credit and property management, and further improve the criminal legislation to pursue personal fraud and bankruptcy. At the same time, it should also be noted that the current scope of application of the Regulations is limited to Shenzhen, and the relevant personnel involved in the debtor are not necessarily subject to Shenzhen’s supervision. Therefore, in the actual implementation process, they will face difficulties such as property and debt difficult to identify, which requires further national level Improve relevant laws and regulations and implement systematic supervision.

  Our reporter Yang Yangteng