At present, our country only has a corporate bankruptcy system and no personal bankruptcy system. When a company goes bankrupt, it only needs to bear responsibility for the company's debts with all its property, and the excess does not need to be borne; but because there is no personal bankruptcy system, so Personal debts currently require unlimited liability.

For example: a company is currently unable to make ends meet and can no longer operate, and the company files for bankruptcy. At this time, if the company’s total net assets are only 10 million yuan, and the company’s liabilities are 20 million yuan, if the company has no If there is any fraud (such as transferring assets, etc.), then after filing for bankruptcy, the company's 10 million yuan of funds will be distributed to the debtor in equal amounts (for example, if it owes two people 5 million yuan and 15 million yuan respectively, then it will repay the two people 2.5 million yuan respectively. Yuan and 7.5 million yuan), and then the debts and rights were settled in full.

What about individuals? Because there is no bankruptcy system, suppose you owe someone 1 million yuan and your assets at this time are only 100,000 yuan. Since you cannot apply for bankruptcy, the 1 million yuan will accompany you throughout your life until you pay it off in full.

Personal Bankruptcy System

On July 16, 2019, the National Development and Reform Commission and other departments jointly issued the "Reform Plan for Accelerating the Improvement of the Exit System of Market Entities", which clearly stated in the document: Research Establish a personal bankruptcy system, gradually promote the establishment of a natural person who can reasonably be exempted from qualified consumer debts in accordance with the law, and eventually establish a comprehensive personal bankruptcy system. This marks the first step in our country's personal bankruptcy system, but it is estimated that it will take some time to fully establish a personal bankruptcy system.

Since there are currently no laws and regulations related to personal bankruptcy in our country, when an individual becomes insolvent in reality, the creditor often tries every means to collect the debt, while the debtor runs around trying to escape the debt like a frightened bird, and some even cause family tragedy. , this is not a good ending for both parties.

Therefore, in launching the personal bankruptcy system, I think there are two main considerations:

First, to give those "honest and unfortunate" debtors a chance to start over (such as People who fail to start a business due to objective factors can slowly repair their credit and start over after bankruptcy); at the same time, the legitimate rights and interests of creditors can also be protected (creditors no longer have to pursue debts, and with the bankruptcy system, debtors will generally not Absconding, although the creditor will lose part of the funds recovered, it is better than not knowing that it can be recovered in the year of the monkey and the month of the horse).

Second, if the personal bankruptcy system can be implemented, then others will be responsible for your loans, so that there will no longer be random allocation of funds in society, whether it is banks or various online loans. In the past, lending was done more cautiously because if you were careless, you might never get the money back.

Will there be fake bankruptcy?

The starting point of the country has always been good, but there are always people who want to take advantage of loopholes. As long as this policy is introduced, there will definitely be people who think in this regard, just like what you said in this question is owed 600,000 yuan. , do you not need to pay it back? I can tell you clearly that the reality is not as good as you think. According to the practice in the United States, Japan and Hong Kong, personal bankruptcy laws generally have the following response measures:

First of all, for "Lao Lai" who are unable to repay their debts but deliberately refuse to repay their debts cannot enjoy the exemption protection of the bankruptcy law. If they abuse the personal bankruptcy system and deliberately evade debts, once they are discovered, it will directly constitute an illegal act. If the circumstances are serious, it will also constitute a criminal offense. If you commit a crime, you must be held criminally responsible.

Secondly, the exempted debt does not mean that it will be settled immediately after filing for bankruptcy, but there is a protection period for the exemption. For example, it is currently seven years in the United States, five years in Hong Kong, and 5-10 years in Japan ( Please refer to the court ruling for details). During this period, you still have to pay off the debt. For example: you owe a debt of 10 million yuan and your existing personal assets are 1 million yuan. After filing for bankruptcy, you theoretically still have a debt of 9 million yuan. Within a specified period of time, such as Hong Kong, starting from the date of bankruptcy , in the next five years, in addition to basic living expenses, you must turn over all the rest of your income to repay debts. After five years, the difference will be truly exempted. For example, if you repay another 3 million yuan within five years, so in the end it will be truly exempted. What is forgiven is a debt of 6 million.

Actual case

There is a well-known bankruptcy case in Hong Kong, that is, the bankruptcy case of Hong Kong star Zhong Zhentao. At that time, Zhong Zhentao borrowed money to speculate in real estate, but unexpectedly encountered a sharp drop in house prices, and finally returned the money. Unable to afford the principal and interest of the bank loan, I filed for bankruptcy. In October 2002, the Hong Kong court ruled that Zhong Zhentao was bankrupt. According to the relevant provisions of Hong Kong's Bankruptcy Ordinance at that time: During the bankruptcy period, the income earned by Zhong Zhentao must be handed over to the Hong Kong Receiver's Office. After the Receiver's Office provides necessary living expenses according to his living needs, all the remaining income will be used to repay debts. It was not until five years later that the bankruptcy was lifted. Therefore, personal bankruptcy is far less simple than business bankruptcy.

Summary

To sum up, at present, the credit cards you owe in various banks still have to be repaid. Firstly, our country’s personal bankruptcy system has not been officially released. Secondly, even if it is true, After the announcement of "I filed for bankruptcy" has been implemented, all debts can be forgiven by just saying "I file for bankruptcy", so it is the right way to repay the debt honestly and on time.