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Debtor in China’s First Personal Bankruptcy Case Concludes Bankruptcy Proceedings

Mon, 18 Sep 2023
Categories: China Legal Trends

On 20 June 2023, the Shenzhen Bankruptcy Tribunal of the Shenzhen Intermediate People’s Court (hereinafter the “Shenzhen Court”) served a civil ruling to Liang Wenjin, the debtor in China’s first domestic personal bankruptcy case, declaring the case concluded and his outstanding debts discharged.

Liang, the applicant in China’s first personal bankruptcy case, has gained a financial chance of rebirth.

On 10 Mar. 2021, Liang filed a personal bankruptcy application with the Shenzhen Court.

In July 2021, the Shenzhen Court served Liang with a ruling that, according to the reorganization plan that came into effect under the Court’s ruling, Liang should pay off the principal of his debts within three years and need not pay interest. If Liang failed to comply with the reorganization plan, the creditors were entitled to recover all outstanding principal and interest on his borrowings.

In mid-April 2023, the 21st month of the reorganization plan’s implementation, the debtor finally paid off the principal of all claims, which was 15 months ahead of the plan’s requirements. Subsequently, the debtor applied to the Court for a discharge of the remaining outstanding debts, which was granted by the Court’s decision.

 

 

Photo by tommao wang on Unsplash

Contributors: CJO Staff Contributors Team

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