Vol 23 (2026) - Issue 3

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Dilemmas and Optimisation Paths for the Linkage Mechanism between Personal Bankruptcy and the Social Credit System in China

Synopsis
Currently, China's personal bankruptcy system still faces shortcomings in areas such as credit information collection, credit restoration mechanisms, and reward and punishment measures, resulting in limited operational effectiveness. In this regard, this paper proposes that the scope of credit information collection should be expanded, the criteria for evaluating 'honest but unfortunate' debtors should be clarified, and diversified
credit reporting agencies should be established to improve the personal credit investigation mechanism. At the same time, it is essential to strengthen the linkage between bankruptcy information and the social credit system, optimise credit restoration procedures, and balance incentives and penalties to comprehensively restore debtors' credit. Ultimately, these measures will promote the synergistic development of the personal bankruptcy system and the social credit system, providing robust support for economic health and social stability.