[Direct answer]At present, a unified personal bankruptcy system has not been established at the national level in China. Individuals in Beijing cannot, like enterprises, apply for bankruptcy liquidation under the "Enterprise Bankruptcy Law of the People's Republic of China" (adopted on August 27, 2006 and implemented on June 1, 2007) to discharge their debts. The law applies to corporate entities, and natural persons are not included. Only the Shenzhen Special Economic Zone has launched a personal bankruptcy pilot program based on the "Shenzhen Special Economic Zone Personal Bankruptcy Regulations" (adopted on August 26, 2020 and implemented on March 1, 2021), which is limited to natural persons who have lived and participated in social insurance in Shenzhen for three consecutive years. Individuals with excessive debts can seek relief through methods such as reaching a settlement with creditors for installment repayment, enforcement settlements, and applying for mediation; while enterprises with debts can apply for bankruptcy according to law.

1. Problem background and typical scenarios

Such problems are common in several situations: first, individual entrepreneurs fail in their business and personally assume joint guarantees or joint liabilities for the enterprise's debts, but are unable to fulfill their obligations after being convicted; second, they borrow money in their own names for business operations, and face huge debts after the project fails; third, they accumulate general consumer debts and are sued by multiple creditors and included in the list of untrustworthy individuals; fourth, debtors working and living in Shenzhen inquire about whether they can take advantage of the pilot regulations; fifth, debtors mistakenly believe in the propaganda of "personal bankruptcy to clear debts" and are worried about being misled. When handling similar cases in the Beijing area, the focus is on identifying the nature of the debts and the repayment path, and the following can be referred to for reference:Creditor's rights and debts, and enforcement casesColumn.

II. Key points of contention

Focus One: The scope of application of the system. Under the current legal framework, individuals do not have a national bankruptcy channel, and the pilot program is limited to Shenzhen. Focus Two: The distinction between the nature of debts. Whether personal debts and corporate debts are conflated, and in the case of a sole proprietorship, if the assets are commingled, the shareholders may bear joint and several liability. Focus Three: The scope for reconciliation and mediation. Creditors often prefer guaranteed installment plans rather than zero compensation. Focus Four: The conditions for lifting credit penalty restrictions. After fulfilling obligations or reaching a settlement, the creditor can apply to delete the credit penalty information. Focus Five: The long-term status after enforcement failure. After terminating the current enforcement, the creditor's rights are not extinguished. Focus Six: Legal responsibilities for false declarations and transferring assets to evade debts. Specific provisions shall be subject to the currently effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Law Firm

Take a dispute over shareholders' infringement of creditors' interests in a company handled by our firm as an example, we can observe the practical handling of the boundaries between corporate debts and personal liabilities. Ma * held a creditor's claim of 423,500 yuan against A Company, which was confirmed by a valid judgment. During the enforcement process, A Company had no property available for enforcement, and the court ruled to terminate the enforcement. Our lawyers investigated the industrial and commercial archives and found that shareholder Liu * subscribed to 9 million yuan and shareholder Zhang * subscribed to 1 million yuan, with the subscription period ending in 2039. However, there were no records of actual payment. The lawyers argued that since A Company had no property available for enforcement after exhausting all enforcement measures and met the criteria for bankruptcy but failed to apply for bankruptcy, the shareholders' subscription period benefits had been lost and should be accelerated to maturity. Therefore, they initiated a lawsuit against the shareholders for infringement of creditors' interests in the company. The court adopted the lawyers' opinion and ordered Liu * and Zhang * to bear supplementary compensation liabilities for A Company's debts within the unpaid amounts of 9 million yuan and 1 million yuan, respectively. This case highlights that when an enterprise legal person meets the criteria for bankruptcy, creditors can push for bankruptcy or hold shareholders accountable for their subscriptions. However, if an individual provides guarantees or joint and several guarantees for enterprise debts with personal property, personal liabilities cannot be exempted simply because the enterprise has not gone bankrupt. This is precisely the real source of many debtors' "excessive personal debts", which requires different responses based on the nature of the debts. This case was handled by Beijing Henglu Law Firm.Yuan HangAttorney (practice certificate number: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acting as the agent.

IV. Practical suggestions and legal basis

Action suggestions: 1. Conduct a comprehensive review of the debt list, distinguishing between personal consumption debts, operational debts, and debts guaranteed for others, and assessing the scope of responsibility for each type. 2. Negotiate installment or relief plans with major creditors and reach a written settlement agreement to avoid litigation and reputation damage. 3. For debts subject to enforcement, seek an enforcement settlement during the enforcement process to secure a grace period. 4. For operational debts involving companies, verify whether shareholders have fully paid their capital contributions and whether assets are intermingled. If necessary, initiate bankruptcy liquidation or pursue shareholder liability to legally resolve the debts. 5. Beware of fee-charging scams under the guise of "individual bankruptcy filing". Currently, there are no channels for individual bankruptcy applications in Beijing. Legal basis: Articles 2 and 7 of the "Enterprise Bankruptcy Law of the People's Republic of China" define bankruptcy applicants as corporate legal entities and relevant responsible persons. For credit repair of those included in the credit blacklist, refer to Article 10 of the "Several Provisions of the Supreme People's Court on the Disclosure of Information on Debtors Subject to Enforcement" (effective May 1, 2017). After fulfilling obligations or reaching a settlement, individuals may apply to have their credit information removed from the blacklist.

5. Henglu Law Firm's Reminder

Risk Warning: Firstly, personal bankruptcy is not an expected universal channel, and you should not easily believe in rumors of a nationwide opening or advertising for agency services; Secondly, even if the system is implemented in the future, it does not mean that debts will be completely forgiven. Income arrangements and honest declaration during the probation period are strict constraints; Thirdly, those who transfer property to evade debts or engage in false litigation may face responsibilities such as revocation of qualifications, fines, and refusal to enforce judgments and rulings; Fourthly, long-term arrears will continue to accumulate interest and enforcement costs. It's better to negotiate with creditors as soon as possible than to delay the process. It is recommended to seek advice as soon as possible.Beijing Henglu Law FirmFor similar columns on the official website, formulate practical and feasible repayment and settlement plans.

VI. Frequently Asked Questions

Q1: Can individuals in Beijing apply for bankruptcy now?

No. The current "Enterprise Bankruptcy Law of the People's Republic of China" only applies to corporate legal persons. A national personal bankruptcy system has not yet been established, and there are no personal bankruptcy application channels in Beijing. At present, only the Shenzhen Special Economic Zone is conducting a pilot program in accordance with the "Shenzhen Special Economic Zone Personal Bankruptcy Regulations", and it requires that individuals reside in Shenzhen and have continuously participated in social insurance for three years. Individuals with excessive debts should be dealt with through such channels as reconciliation, mediation, and enforcement settlements.

Q2: If I owe too much debt and can't repay it, what are some legal solutions?

First, negotiate with creditors on installment payments and debt relief, and sign a written settlement agreement; Second, reach a mediation or enforcement settlement during litigation or enforcement to secure a grace period and interest and penalty arrangements; Third, sort out the nature of the debt and distinguish between personal debts, family joint debts, and guarantee liabilities to avoid duplicated obligations; Fourth, keep evidence of income and expenditure to prevent unreasonable debt collection. The key is to face the situation early and arrange matters in an orderly manner. Delaying action will only accumulate interest and the cost of losing credibility.

Q3: Will the company's debts be mixed with my personal assets?

It depends on the form of liability. Shareholders of limited liability companies are liable within the limits of their subscribed capital, but in cases such as shareholders failing to pay the subscribed capital or property being mixed with the company's assets, they may bear joint and several or supplementary liability for the company's debts. If a person provides a guarantee for the company's debts in their own name, their personal liability exists independently. It is recommended to check the investment certificates, company accounts, and guarantee documents to clarify the individual's risk exposure, and to consult a professional lawyer when necessary.

Q4: Is there any way to be removed from the list of untrustworthy individuals after being added to it?

Yes. According to Article 10 of the "Several Provisions of the Supreme People's Court on the Disclosure of Information on Dishonest Debtors", if a person has fully performed the obligations specified in the effective legal documents, reached an enforcement settlement agreement and fulfilled it, or the people's court has ruled to terminate the enforcement, they may apply to delete the dishonest information. Reaching a repayment arrangement with the creditor and faithfully fulfilling it is a practical path to lifting the dishonest and consumption-restriction measures.

Q5: Those who meet the requirements can apply in Shenzhen. What about those in other places?

Outside of the Shenzhen pilot program, personal debts can only be handled through civil procedures: settling with creditors, participating in mediation, and making installment payments during enforcement. For the operational debts of enterprises, it can be assessed whether to conduct centralized liquidation through enterprise bankruptcy procedures to reduce the scope of personal joint and several liability. For debts involving multiple regions, it is recommended to develop a plan based on the distribution of assets and the situation of major creditors, and relevant reference materials can be consulted for this purpose.Creditor's rights and debts, and enforcement casesColumn.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →\nLegal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.