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How to deal with personal debts when applying for bankruptcy

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How to deal with personal debts when applying for bankruptcy


        

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  • 2024-06-06 05:00:54

    After applying for bankruptcy, personal debts shall be paid off by the bankruptcy property.

    After the debtor is declared bankrupt, the debtor's property is the bankruptcy property.

    After the bankruptcy property has first paid off the bankruptcy expenses and common benefit debts, other debts shall be paid off in the following order:

    (1) Alimony, alimony, maintenance fees owed by the debtor and damages exclusive to personal compensation;

    (2) The salary, medical treatment, disability allowance, pension and other expenses owed by the debtor to the employees shall be paid into the basic endowment insurance, basic medical insurance and other social insurance expenses of the employees' personal accounts, as well as the compensation payable to the employees according to law;

    (3) Taxes owed by the debtor;

    (4) Ordinary bankruptcy claims, in which the debtor's spouse and former spouse, close relatives living together and adult children may not be paid off as ordinary creditors before other ordinary bankruptcy creditors are fully paid off;

    (5) The amount of fines owed due to illegal or criminal acts.

    If the bankruptcy property is not enough to pay off the creditor's rights in the same order, it shall be distributed in proportion.

    [Legal Basis]

    Article 89 of the Regulations of Shenzhen Special Economic Zone on Individual Bankruptcy states that after the bankruptcy property has first paid off the bankruptcy expenses and the debts of common interests, other debts shall be paid off in the following order:

    (1) Alimony, alimony, maintenance fees owed by the debtor and damages exclusive to personal compensation;

    (2) The salary, medical treatment, disability allowance, pension and other expenses owed by the debtor to the employees shall be paid into the basic endowment insurance, basic medical insurance and other social insurance expenses of the employees' personal accounts, as well as the compensation payable to the employees according to law;

    (3) Taxes owed by the debtor;

    (4) Ordinary bankruptcy claims, in which the debtor's spouse and former spouse, close relatives living together and adult children may not be paid off as ordinary creditors before other ordinary bankruptcy creditors are fully paid off;

    (5) The amount of fines owed due to illegal or criminal acts.

    If the bankruptcy property is not enough to pay off the creditor's rights in the same order, it shall be distributed in proportion.

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