Stall owner gets Jiangsu's first credit repair certificate

A court in Wuxi, Jiangsu province, recently issued the province's first "personal bankruptcy credit repair certificate" to a stall owner at a local farmers market, marking a milestone in China's exploration of personal bankruptcy procedures.

The certificate means the debtor, Wei Yunpei, has repaid his debts under a court-approved plan and will no longer face credit penalties in economic transactions.

Wei, a 62-year-old native of Chongqing, moved to Wuxi in 1986 to work as a construction laborer. He later formed a construction team and began subcontracting projects in neighboring cities.

In 2012, he incurred debt of more than 300,000 yuan ($40,881) after a contractor disappeared. Labeled a dishonest debtor in 2018, he continued repaying the money by selling goods at a market with his wife.

China has established a personal bankruptcy system, but it has not yet been uniformly implemented nationwide. Instead, it is being gradually rolled out through pilot programs in several cities.

In 2021, the Xishan District People's Court in Wuxi introduced a system similar to the national one, designed for honest individuals who are unable to repay heavy debts due to unforeseen circumstances. Wei applied and was approved in September 2021, allowing him to pay off the remaining 75,838 yuan over three-and-a-half years.

Wu Xiugui, deputy director of the court's enforcement bureau, said the system does not apply to debts from gambling, crimes or malicious activities. The court evaluates the reasons behind the debt and the debtor's cooperation before approving applications.

"The court carefully balances two principles when formulating a debt repayment plan," Wu said. "We ensure fair compensation for creditors while considering the debtor's repayment capacity and potential income."

Wei made his final repayment in January and received the credit repair certificate in late March, which allowed him to participate freely in economic activities again.

Zhu Rong, director of the enforcement bureau of the Jiangsu Higher People's Court, said the case reflects a people-oriented judicial philosophy and the supportive nature of the pilot system, which allows debtors to make a fresh start.

Lin Shuang, deputy head of the second civil division of the Xishan District People's Court, said the certificate provides a positive incentive for debtors who fulfill their obligations honestly.

As of December 2024, Jiangsu courts had accepted 1,290 similar personal bankruptcy cases and granted discharges to 214 debtors.

"A man should be conscientious and honest," Wei said. With his credit restored, he has begun planning for a new life.

"I plan to work a few more years and then retire back home," he said. "I will build a house, take out a loan to open a shop and save money for my children."

Guo Jun contributed to the story.