Recently, Shenzhen Intermediate People’s Court issued a notice revealing that a 37-year-old woman surnamed Zhou in Shenzhen has a monthly income of 4700 Chinese Yuan but owes a whopping 25.44 million Yuan in debt. The stark contrast between Zhou’s income and her massive debt has shocked the online community.
The personal bankruptcy liquidation application notice released by Shenzhen Intermediate People’s Court shows that the applicant Zhou, a 37-year-old female, earns a monthly salary of 4784 Yuan, with a housing provident fund balance of 11592.27 Yuan, but has declared total debts exceeding 25.44 million Yuan.
The huge disparity between bankrupt applicant Zhou’s current income and the enormous debt she owes has sparked discussions among mainland Chinese netizens:
“Shocked! How did she accumulate such a high amount of debt? Was it from high-interest loans or being a professional debtor?”
“A monthly salary of four thousand and debts in tens of millions, is it a result of desperation or a carefully planned debt evasion script?”
“It seems like ordinary people can borrow 50 million as if it’s nothing. Without collateral, you can’t even borrow 500 thousand. Banks are so cunning.”
“Seeing this kind of contrast in numbers is truly chilling. How can a 4700 Yuan monthly salary bear a 25.44 million debt? Someone who can owe over two million definitely isn’t an ordinary person.”
“She would need to work without eating or drinking for 442 years to repay the debt, equivalent to working from the Ming Dynasty era to 2024.”
“This unfillable debt pit will eventually shift to ordinary people for sharing.”
For more details, the Shenzhen Municipal Personal Bankruptcy Information Network shows that the announcement by the court indicates that the application is in the public notice stage of the bankruptcy liquidation application process, in accordance with Article 10 of the “Shenzhen Special Economic Zone Personal Bankruptcy Regulations”.
The announcement states that if there are any objections or information regarding the applicant’s bankruptcy fraud or related illegal activities, informants can submit materials through designated channels provided by the platform or the court.
On May 9, Upstream News contacted staff at the Shenzhen Intermediate People’s Court, and they stated that “the case is currently in the review announcement stage of the personal bankruptcy application.”
Staff from the Shenzhen Bankruptcy Administration Office mentioned, “The court’s announcement is for personal application review, not for acceptance. The purpose of the review announcement is to gather feedback from informants and verify the truthfulness of the applicant’s information.”
Shenzhen is the first city in China to pilot the personal bankruptcy system. The “Shenzhen Special Economic Zone Personal Bankruptcy Regulations” provides three procedures for bankruptcy liquidation, reorganization, and settlement. Debtors can file for bankruptcy based on their own situations. The court will investigate key aspects such as the source of debts and the whereabouts of assets. If the applicant engages in bankruptcy fraud, severe actions may be taken, including criminal liabilities.
If the application is approved, the court will establish a repayment plan requiring the debtor to use the excess of future income beyond basic living expenses for debt repayment and to restrict high consumption behaviors.
Lawyer Nie Sha from Beijing Yingke (Chongqing) Law Firm stated that the personal bankruptcy system is designed to offer debt restructuring opportunities for individuals facing severe financial challenges who are honest and trustworthy, with the goal of promoting entrepreneurial innovation for debtors.
It’s worth noting that a similar case occurred in Shenzhen in September 2024.
The Shenzhen Intermediate People’s Court ruled bankruptcy for a couple, Guo and Li, who have been in business in Luohu District since 1998. In 2009, their warehouse suffered a fire, resulting in about 1.5 million Yuan worth of inventory being destroyed. In 2012, the couple reopened their business but continuously faced losses.
In October last year, the couple closed their shop, leaving debts exceeding 9.28 million Yuan. After applying for personal bankruptcy liquidation, the bankruptcy administrator found that the couple owned a property in Luohu District with an area of 114.39 square meters but lacked significant assets; their cash and savings were less than 400 Yuan, leading to financial difficulties. The ruling declared the couple bankrupt.
Subsequently, their property was auctioned online to raise funds for repayment, and a three-year observation period was set upon the court’s declaration of bankruptcy. After the observation period, debtors can apply for the discharge of outstanding debts, which will be decided by the court through legal examinations.