In China, personal debt is becoming a serious issue, with millions facing consequences for unpaid debts. Unlike the US, bankruptcy isn't an option, leading to severe penalties for defaulters. Those on the government's blacklist face restrictions on travel, insurance, and even leisure activities. With household debt skyrocketing, primarily due to housing loans and economic stagnation, the situation is dire. Scholars advocate for a personal bankruptcy system, but implementing it poses challenges. As the debt crisis worsens, it's impacting consumer spending and affecting Western companies operating in China.