How to apply for debt clearance

To apply for the liquidation of personal debts, you need to meet certain conditions and prepare corresponding materials, as follows:

1. Meet the jurisdictional conditions, and the personal assets are insufficient to pay off all debts or are obviously lacking Solvency.

2. Prepare the following materials: Application for centralized liquidation of personal debts, letter of integrity commitment signed by myself and my spouse ***, copies of ID cards, household registers and other identity certificates, Property list and status report under the name of adult children and other close relatives living with ***, debt list and corresponding basis, creditor contact information, credit report of myself and my spouse, income status, social security certificate, tax records, liquidation plan As well as the basic information about the minors for whom the debtor has the obligation to support according to law and the close relatives who have lost the ability to work and lack a source of livelihood and for whom the debtor bears the obligation to support.

3. Apply to the court for centralized liquidation of personal debts. After the People's Court decides to accept the centralized liquidation of the debtor's personal debts and appoints an administrator, the administrator shall promptly formulate a property valuation plan for the debtor and submit it to the creditors' meeting for review. After the final distribution is completed, the administrator shall promptly submit a distribution report of the debtor's property to the People's Court, and Request the People's Court to rule on ending the centralized liquidation process of personal debts.

Steps for clearing creditor's rights and debts:

1. Re-examine and sign the repayment agreement, and pay off the arrears as agreed in the agreement;

2. Settlement of creditor's rights and finance Combining support and debt erasure, implement comprehensive debt settlement;

3. Encourage enterprise development, and adopt debt-to-equity swaps or debt-to-investment swaps for debts owed by production-oriented enterprises with strong growth potential.

To sum up, clearing personal debt is a process that requires patience and determination. After achieving zero personal debt, you must also continue to learn and improve your financial literacy to better cope with future financial challenges and opportunities.

Legal basis:

"The People's Republic of China and the Civil Code"

Article 1064

Husband and wife Debts borne by both parties with the same consent or with subsequent ratification by one spouse, as well as debts borne by one spouse in his or her own name for the daily needs of the family during the marriage, shall belong to the same agreement. debt. Debts borne by one spouse in his or her own name beyond the daily needs of the family during the marriage are not joint debts of the couple; however, the creditor can prove that the debts are used for the husband and wife's daily life and production. Exceptions are made for business operations or based on the consent of both spouses.