This Statute is formulated for the purpose of enabling consumers with debts to clear their debts according to the process set out in this Statute, to adjust the consumers' rights and obligations with their creditors and other interested parties, to assure fair repayment of creditors, and to promote financial rehabilitation of consumers and sound development of the social economy.

The term Consumers as used in this Statute refers to natural persons who have not engaged in business activities within five years or have engaged in small business activities.
"Small business" in the preceding paragraph refers to a business of which gross income per month is less than NTD 200,000.
The amount specified in the preceding paragraph may be increased or reduced by an order of the Judicial Yuan if circumstance so requires.

If a debtor is unable or might be unable to repay his/her debts, he/she may clear his/her debts according to the rehabilitation or liquidation process set out by this Statute.

If a debtor is a person without capacity for juridical acts or a person with limited capacity for juridical acts, the provisions of this Statute regarding the obligations and penalties of the debtor shall also apply to his/her statutory agent.

Rehabilitation and liquidation matters shall be under the exclusive jurisdiction of the district court where the domicile or residence of the debtor is located.
If the court of jurisdiction cannot be determined under the preceding paragraph, the court at the place where the majority of the debtor's property is located shall have jurisdiction.

The district court shall establish either a dedicated tribunal for consumer debt clearance or a dedicated division for settlement of consumer debt clearance matters.

Each application for rehabilitation or liquidation shall require an application fee of NTD 1,000.
The postal service fee and the travel expense of court personnel will not be otherwise charged. However, if the amount of the expense required exceeds the amount of application fee charged, the excess amount shall be charged according to the actual amount expensed.
In respect of the expense required under the preceding paragraph and the fee necessary for the rehabilitation or liquidation process, the court may fix a reasonable amount, and determine a date and order the applicants to make prepayment of such amount within a fixed period. If the prepayment is not made, unless otherwise provided for, the court may dismiss the application for rehabilitation or liquidation.

A debtor who applies for liquidation but has no financial means to pay the fee under the preceding Article may apply to the court for temporary exemption from payment.
The reason for the debtor's lack of financial means to pay the fee shall be explained.
No appeal may be taken from a ruling of the court concerning the approval or denial of temporary exemption from payment.
The fee for which payment is temporarily exempted under the first paragraph of this Article shall be advanced by the national treasury.

If the application for rehabilitation or liquidation fails to conform to the applicable legal requirements, the court shall dismiss the application. However, if such failure can be corrected, the court shall determine a period and order the correction first.

The court shall investigate the necessary facts and evidence on its own initiative, and may make inquiries with taxation or other agencies or organizations.
In order to investigate the facts, the court may order any related person or statutory agent to be present in person or state his/her opinions in writing.
The court's investigation and interrogation may not be made public.

Relatives of the debtor, persons who manage the property for the debtor, or other related persons shall have the obligation to reply when the court inquires about the debtor's property, income, and business conditions.
If any person mentioned in the preceding paragraph does not respond to the court's inquiry without reason or makes a false statement, the court may impose a fine of NTD 3,000 to NTD 30,000.
If any person to whom this article applies has been fined under the preceding paragraph, but makes a false statement or fails to reply without reason, the court may impose additional punishment on him/her.
The court shall give the punished person an opportunity to state his/her opinions before the rulings under the preceding two paragraphs.
The rulings under paragraphs 2 and 3 of this article shall be suspended when an appeal is pending.

Adjudication for rehabilitation or liquidation matters shall be determined by a single judge.
The appeal shall be heard by judges sitting in council of the district court with jurisdiction.
If an appeal is dismissed by an appeal court on ground of nonconformity with the law, no re-appeal may be taken. Notwithstanding, an objection may be filed with the original court.
For the objection under the preceding paragraph, the provisions of paragraphs 2 and 3 of Article 484 of the Taiwan Code of Civil Procedure shall apply mutatis mutandis.
Except as provided in the preceding two paragraphs, a re-appeal may be taken from a ruling made by the appeal court only when it is based on the ground that there is a manifest error in the application of the law.
No application for rehearing may be made with respect to the ruling rendered under this Statute.

Before rendering a ruling dismissing the application for rehabilitation or liquidation, the court shall give the debtor the opportunity to state his/her opinions before the court.

After the court approves initiation of the rehabilitation or liquidation process, the debtor may not withdraw the application for rehabilitation or liquidation without the consent of all creditors who have declared their unsecured and unprivileged claims. The same shall apply to any case when the disposition of preservation has been made under Article 19 before the court's ruling.
The withdrawal of the application for rehabilitation or liquidation shall be made by pleadings.
The creditors under paragraph 1 of this article shall be deemed to have agreed to the withdrawal if they fail to raise an objection within 10 days from the date of service of the withdrawal pleading.

If the debtor has applied for rehabilitation or liquidation under this Statute, creditors may not apply for declaration of bankruptcy of the debtor in accordance with the Bankruptcy Act.

Each public notice under this Statute shall be publicly announced in the court's bulletin, or on its information website or other proper place; the court may also order that the notice be published in a bulletin, newspaper, or by any other method, if it deems necessary.
Unless otherwise provided for in this Statute, each public notice under the preceding Paragraph shall have the effect of service on all interested parties from the day following the last announcement date.

Regarding the rehabilitation or liquidation process, unless otherwise provided for in this Statute, the provision of the Taiwan Code of Civil Procedure shall apply mutatis mutandis.