After prison, bankruptcy, or a dishonest-debtor list, the law still has a path to start over — finish the procedures first

People released after serving a sentence must not be discriminated against in employment, schooling, or social insurance; those in living difficulty are helped into placement by the government. If the crime was committed under age 18 and the sentence was 5 years or less, the record is sealed; you need not report it when joining the military or seeking work. The dishonest list lasts 2 years; once the money is repaid the court should remove the name within 3 working days. Adult criminal records are not sealed; you must report them truthfully when joining the military or seeking work.

Cost

No handling fee. After release from prison, report to the judicial office or subdistrict of the hukou or residence place and apply for resettlement and help (government placement and support). If you are on the list of dishonest persons subject to enforcement, repay what is owed, then apply to the enforcing court to have the name removed. Individuals insured in Shenzhen for a full 3 years may apply for personal bankruptcy. Each step needs materials and interviews, plus a 1-to-3-year observation period. The hard part is telling the past over and over, and lasting through the observation period.

Benefit

Persons released after serving a sentence enjoy equal rights with other citizens by law and must not be discriminated against in employment, schooling, or social security. Those in living difficulty are helped into placement and given lawful assistance by the government of the hukou or residence place (Prison Law (监狱法) revised in 2026, in force from November (11) 1, 2026). A 2010 central document requires stronger vocational training for them, inclusion in dibao when eligible, and transitional placement bases. If the crime was committed under age 18 and the sentence was 5 years or less, the criminal record is sealed; you need not report it when joining the military or seeking work; if you apply for a certificate of no criminal record, it is issued within 3 working days. The dishonest list lasts 2 years. Once the money is repaid, or in situations such as settlement with the other side, the court should remove the name within 3 working days. The Shenzhen Special Economic Zone Personal Bankruptcy Regulations are currently the only personal bankruptcy rules; after bankruptcy is declared and a full 3-year observation period is completed, unpaid debts may be discharged. Enterprise legal persons that cannot pay due debts and owe more than they have (insolvency) may apply for reorganization, settlement, or bankruptcy liquidation. After the bankruptcy procedure ends, the enterprise goes through deregistration. But people who guaranteed for the enterprise and other joint debtors “continue to bear repayment liability by law” for what remains unpaid. If the boss personally signed a guarantee for the company, that person still must repay. Adult prior records are not sealed: Article 100 of the Criminal Law (刑法) says that a person who has lawfully received a criminal penalty must report it truthfully when joining the military or seeking employment and must not conceal it (nationwide; personal bankruptcy only in Shenzhen)

Notes

Adult criminal records are not sealed. Article 100 of the Criminal Law (刑法) requires truthful reporting of a criminal penalty when joining the military or seeking work. Civil servants, judges, lawyers, teachers, and similar posts, and political vetting, have separate statutory limits; the non-discrimination rule above does not change that. Before November (11) 1, 2026, the current Prison Law (监狱法) text corresponds to Articles 37 and 38; article numbers follow the text in force. (中办发〔2010〕5号) was not found as an original page on the central government site; the citation is from a district government republication. During the personal bankruptcy observation period you may not fly first class, engage in high consumption, or buy housing. Eight classes of debt, including compensation for intentional harm to another’s person, are not discharged. A discharge obtained by fraud may still be revoked.

Sources · 7

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