A landmark personal bankruptcy ruling by a court in southern Chinese city of Shenzhen could pave the way for the nationwide rollout of a legal system that would allow individuals and private businesspeople who cant repay their loans to undergo debt workouts or be declared bankrupt.
The Shenzhen Intermediate Peoples Court approved a bankruptcy restructuring plan (link in Chinese) for Liang Wenjin, a businessman who racked up 750,000 yuan ($155,544) in debt as of March after a failed business venture, according to a statement posted by the court on Monday. Liang was ordered to repay the principal to his creditors within three years but was exempted from paying interest and late-payment penalties.
Although a personal bankruptcy law has bee…
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