From March 1 this year, the country’s first personal bankruptcy regulations, the “Shenzhen Special Economic Zone Personal Bankruptcy Regulations” (hereinafter referred to as the “Personal Bankruptcy Regulations”) were formally implemented. According to the “Personal Bankruptcy Regulations”, after passing the exemption inspection period, Humou can forgive the remaining debts.
It is understood that Hu ran a business in a shopping mall in Shenzhen from 2014 to 2016educateThe training organization later had to close down due to the closure of the shopping mall, resulting in Humou’s debt of more than 4.8 million yuan. In 2018, Humou sold his only house, and the proceeds of 2.6 million yuan from the sale of the house were used to repay debts, and he still has more than 1.4 million yuan in debt.
On June 9 this year, Hu submitted a personal bankruptcy liquidation application to the Shenzhen Intermediate Court due to his own insolvency. After investigation, the Shenzhen Intermediate People’s Court determined that Hu’s property was not enough to pay off all debts and met the conditions for declaring bankruptcy.
According to the report, Hu Mou currently has no regular job, has a monthly labor income of about 5,000 yuan, has a deposit of less than 1,000 yuan, and owns property worth about 3950 yuan, such as furniture and home appliances, and raises his daughter alone after divorce.
On November 8, the Shenzhen Intermediate People’s Court delivered the documents to Hu, and formally ruled that he was bankrupt.
As soon as the news came out, it quickly sparked heated discussions, and netizens said one after another, do they still need to continue to repay their debts after bankruptcy? Will the interests of creditors affect it?
In this regard, some experts said that after Hu Yong went bankrupt, it does not mean that 1.4 million debts do not need to be fulfilled. According to Article 95 of the Regulations, there is a three-year inspection period after bankruptcy. During this period, Hu Yong must declare his income and expenses every month. In addition to leaving the necessary living expenses, other income still has to pay off debts. After the three-year period expires, if the performance is better, all outstanding debts can be forgiven.
In addition, the debtor must report the latest status of its income and expenditure every month, so as to ensure that the bankruptcy administrator can effectively and dynamically monitor the debtor’s property changes.
If the debtor does not violate the relevant regulations after the expiration of the inspection period, but still cannot repay all the debts, then the debts of the creditor will face a state of statutory elimination.
To put it simply, the original intention of the personal bankruptcy system is that when an “honest and unfortunate” debtor fails to pay, the debt can be liquidated through the personal bankruptcy procedure, so that the remaining debts can be eliminated and the economy will be reborn. Personal bankruptcy procedures should be a powerful weapon to safeguard the interests of creditors, save “honest and unfortunate” debtors, and protect the public interest.