With the current global unstable economic situation and
China's proactive approach to cracking down on debt, LehmanBrown
International Accountants collaborated with BIRT International
Restructuring1] to look into how China deals with
Consumer Bankruptcy.
China currently has no specific consumer bankruptcy laws at a
national level. Historically, bankruptcy was a criminal
act that previously could result in a repeat offender's death
penalty because bankruptcy was "not permitted by heaven and
earth, and an extraordinary crime against
society".2 Furthermore, the local custom was
to then pass on debt to the next of kin to where the children would
repay the father's debts.3
China since those early days has made huge leaps forward where
individual bankruptcy now leads to offenders lose face and face
disadvantages when dealing with bankruptcy dealings. However, there
is still unease from creditors as a way for individual debtors to
use it as a loophole to avoid their
