A court in the southern business hub of Shenzhen has approved China’s first personal bankruptcy liquidation (破产清算), another step forward in building a legal framework that will allow millions of individuals across the country to reorganize their debts and make a fresh start.
Hu Xuhui, a local resident who didn’t have enough assets to pay her liabilities, was declared insolvent, a process also known in China as bankruptcy liquidation, according to a ruling (link in Chinese) published Tuesday by the Shenzhen Intermediate People’s Court. She will now be subject to restrictions on luxury spending and work for three years and any new assets she earns or acquires, above an agreed monthly budget for living expenses, will…