If the total amount of the principal and interest of the debt which is unsecured or without preferential right does not exceed NTD 12,000,000, the debtor may apply to the court for rehabilitation before the initiation of the liquidation process is ruled on or the bankruptcy is announced by the court.
The total amount of the debt under the preceding paragraph may be added or reduced by order of the court, if circumstance so requires.

In applying for rehabilitation, the debtor shall submit the description of his/her property, his/her income status, and the roster of his/her creditors and debtors.
The roster of creditors under the preceding paragraph shall state the following matters:
1. Names or titles and addresses of the creditors, and the amount, reason and category of each claim.
2. Identification of property with security rights or preferential rights, and the amount of claims which cannot be satisfied for repayment after the exercise of such rights.
3. Claim of the debtor's residential mortgage.
In applying for rehabilitation, the debtor who has a residential mortgage shall also state whether the special provision for residential mortgage is set forth in his/her rehabilitation proposal.
The residential mortgage under subparagraph 3 of paragraph 2 of this Article refers to a building owned by the debtor and used as the residence of himself/herself and his/her family. If there are two or more houses, it shall only refer to one which is the debtor's principal residence. The residential mortgage claim refers to the claim for funds which are required by the debtor for construction or purchase of the house or its improvement, including funds for acquisition of the site land of the house or the use right thereof, and which shall be repaid by installments as agreed in the borrowing from the creditor by creation of security of the house.
The roster of debtors under paragraph 1 of this article shall state names or titles and addresses of debtors, and amount, reason, category and security of each debt.
The description of property and income status under paragraph 1 of this article shall state the following matters and shall include supporting documents:
1. Property inventory, and the nature and location of the property.
2. Whether the debtor has engaged in business activities in the most recent five years, and the average turnover per month, if any.
3. Amounts, reasons and categories of incomes and necessary expenses.
4. Persons to be supported by the debtor under the law.

If necessary, the court may set a date on which the debtor must report factually the status of change in property within 2 years before the application for rehabilitation, to make a supplemental statement for the matters under the preceding Paragraph, to submit relevant documents, or make other necessary investigation.

The court's ruling on the initiation of the rehabilitation process shall include its year, month, day, and hour, and shall become effective immediately.
No appeal may be taken from a ruling under the preceding paragraph, and such ruling shall be publicly announced.

Under any of the following circumstances, the application for rehabilitation shall be dismissed:
1. The debtor has been sentenced to a criminal penalty under this statute or the Bankruptcy Act.
2. The debtor has been approved by the court for the compromise, rehabilitation or negotiation, but fails to perform the conditions thereof for any cause attributable to him/her.
3. Upon notification by the court, the debtor fails to appear without any justifiable reason, or appears but intentionally fails to make a true statement, or refuses to submit relevant documents, or fails to report the status of change in property without any justifiable reason.

If the court rules on the initiation of the rehabilitation process, the following matters shall be publicly announced:
1. The main text and the year/month/day/hour of the ruling on the initiation of the rehabilitation process.
2. Name and address of the selected supervisor; or name, statutory agent and office or business location of the supervisor if it is a juristic person.
3. The period of declaration and supplemental declaration of claims, during which the creditor shall declare his/her claims to the supervisor, or to the court if no supervisor is selected, and shall submit supporting documents, if any.
4. The effect of deprivation of claims if such claims were not declared or supplementarily declared in accordance with the provision of the preceding subparagraph.
5. The period during which the objection to the declared or supplemental declared claims shall be raised to the court.
6. The date and place of and the matters to be discussed at the creditors' meeting, if such meeting is convened.
The period for declaration of claims under subparagraph 3 of the preceding paragraph shall start from the day following the initiation of the rehabilitation process and shall last for 10 - 20 days; the period for supplemental declaration of claims shall start from the day following the expiration of the period for declaration of claims and shall last no longer than 20 days.
If the creditor exercises his/her rights in accordance with the provision of paragraph 1 of Article 26, the period for declaration of claims under the preceding paragraph shall start from the day following the termination or rescission of the contract. However, the declaration or supplemental declaration of claims may not be later than the previous day of the date when the creditors' meeting adopts the rehabilitation proposal or when the court approves the rehabilitation proposal.
The public announcement and the roster of creditors under paragraph 1 shall be served on the creditors whose residences, offices or business places are known; and the public announcement shall be separately served on the debtor.
A creditor who has been recorded in the roster of creditors shall be deemed to have declared his/her claims as recorded in the roster on the first day of the period for declaration of claims.

After the court's ruling on the initiation of the rehabilitation process, if the property of the debtor must be registered under the law, the registration authority shall be notified.
After the court's ruling on the initiation of the rehabilitation process, the litigation and the compulsory enforcement proceedings against the debtor may not be initiated or continued, unless such proceedings apply to secured or preferential claims.

The supervisor shall have the following duties:
1. Investigate the property, income and business status of the debtor and submit the written report to the court.
2. Assist the debtor in preparing the rehabilitation proposal.
3. Try to calculate the total amount of unsecured and non-preferential claims that may be repaid according to the liquidation process at the time of court's ruling on the initiation of the rehabilitation process.
4. Other matters provided for in this statute or specified by the court.
The provision of Article 10 shall apply mutatis mutandis to any case when the supervisor investigates the property, income, and business status of the debtor; unless the person subject to the investigation is an individual and is exempt from such investigation.
If no supervisor is selected, the court may set a date and order the debtor to submit a report of his/her property and income status.

The supervisor shall make the originals, transcripts or copies of the following documents available to interested parties for review or transcription thereof:
1. The documents relating to the application for rehabilitation and the rehabilitation proposal.
2. Report of the property and income status of the debtor, and the roster of his/her creditors and debtors.
3. The documents relating to the declaration of claims and the list of claims.

The court shall publicly announce the report of property and income status of the debtor and the rehabilitation proposal.

If a creditor has owed debts to the debtor before the court's ruling on the initiation of the rehabilitation process, to the extent that such debts may be offset before expiration of the period for supplemental declaration of claims, the creditor may offset his/her debts against his/her claims with the debtor before the expiration of such period and notify the supervisor or report to the court of such offset.
Under any of the following circumstances, the debts may not be offset:
1. The debts owed to the debtor and incurred by the creditor after he/she has knowledge of the application for rehabilitation, except for debts which are owed on statutory grounds or which were incurred for cause arising before his/her knowledge of the application.
2. The claims acquired from the debtor or the claims in rehabilitation acquired from others by a debtor of the debtor after the court's ruling on the initiation of the rehabilitation process.
3. The claims acquired by a debtor of the debtor after he/she has knowledge of the application for rehabilitation, except for claims which are acquired on statutory grounds or for cause arising before the knowledge of the application.