Shenzhen introduces local standards for personal bankruptcy process

The Shenzhen Municipal Administration for Market Supervision has recently released "Standards for Pre-application Counseling Services for Personal Bankruptcy." The local standards regulate the processes and key points involved in government departments providing counseling services prior to personal bankruptcy applications, enhancing the workflow, and further improving the personal bankruptcy system.

A staffer with the Shenzhen Bankruptcy Affairs Management Office provides counseling service to a resident. Photo from sznews.com

The standard focuses on pre-application counseling as a key aspect of the personal bankruptcy process, outlining clear requirements in areas such as basic principles of service, organizational structure, staffing, equipment, service processes, service content, appointment registration, appointment review, scheduling counseling, organizing counseling sessions, issuing receipts, file management, information sharing, service evaluation, and improvement.

A relevant official from the Shenzhen Bankruptcy Affairs Management Office said that the standards will effectively improve the quality and efficiency of counseling services.

Shenzhen is a pioneer in exploring personal bankruptcy systems in China. On March 1, 2021, the "Shenzhen Special Economic Zone Personal Bankruptcy Regulations" officially took effect, and the Shenzhen Bankruptcy Affairs Management Office, which handles personal bankruptcy matters, was established on the same day. 

Since June 2022, applicants for personal bankruptcy must first participate in pre-application counseling organized by the Shenzhen Bankruptcy Affairs Management Office and obtain a participation receipt before submitting a personal bankruptcy application to the court. The move aimed at addressing issues such as improper application submissions, and low review efficiency during the applications.

Data from the Shenzhen Intermediate People's Court shows that as of August 2024, the Shenzhen Bankruptcy Court has accepted over 350 personal bankruptcy cases. (Xinhua)