If I help a friend borrow money in my own name and then lend it to them, but the friend fails to repay the loan and the bank sues me, what should I do?

As the counterparty to the loan contract, you need to fulfill your obligations to the bank first. However, you can recover the repayment from the actual borrower based on evidence such as transfer records and chat logs with the actual borrower. If necessary, you can entrust a lawyer to assert your rights through mediation or litigation.

After receiving the court's mediation document or ruling, if the other party still refuses to repay the money, how can I apply for the enforcement of the recovered funds?

If the other party fails to perform the obligation on time, you can apply for compulsory enforcement to the court that issued the document, submit an application for compulsory enforcement, and list the enforcement requests and factual reasons. After the court accepts the application, it will take enforcement measures in accordance with the law.

What should I do if I can't find the other party's assets after applying for enforcement?

You can submit an online asset investigation request, and the court will use the National Court Online Asset Investigation System to investigate and freeze/seize the assets under the name of the debtor, including bank deposits, WeChat/Alipay accounts, vehicles, and real estate.

Is it necessary to have the mediation agreement legally confirmed by the court in order for it to be enforceable?

After the court issues a civil ruling confirming the mediation agreement, it will have the same enforceability as a final judgment. If one party breaches the agreement, the other party can directly apply for enforcement without having to initiate another lawsuit.

If the debtor delays in performance, can they claim additional interest?

Yes. If the debtor fails to perform on time, they shall pay the interest on the debt during the period of delay in performance, the specific standard of which shall be calculated in accordance with the provisions of the effective document or the law.

Did you ever help a friend with a loan, only to get cheated in return? Attorney He Ningning successfully represented the client in an enforcement case, helping the client recover the full amount of over 180,000 yuan in damages

[Case Summary]This case is an enforcement case arising from a private loan. The party involved, Liu **, borrowed money from the bank in his own name due to friendship, and then lent the full amount to his friend Zhang **. However, Zhang ** failed to repay the loan on time, and the bank directly sued Liu **, leaving him in a double dilemma of having to repay the debt for others and having his credit record damaged. Beijing Henglu Law FirmHe NingningAfter accepting the client's mandate, the lawyer formulated a step-by-step plan to first mediate with the bank to stop losses and then recover the rights against the actual borrower: First, he helped Liu * * * reach a phased mediation agreement with the bank, and then reached a phased repayment mediation agreement with Zhang * * * for the principal of 170,000 yuan and the loss of funds of 10,000 yuan, and jointly applied to the People's Court of Fengtai District, Beijing City for judicial confirmation, obtaining the Civil Ruling No. (2026) Jing * * * 06 Civil Special (Mediation) * * * 9, which has enforceable force. After Zhang * * * defaulted on the first installment, He * * *, the lawyer, applied for enforcement on behalf of the client, and used the online investigation and control system to seize and withdraw the property. In the end, the client recovered a total of 180,902.47 yuan in principal and interest, and all the creditor's rights were realized. The case was successfully executed.

I. Review of the case

Many people have faced such a dilemma: when a friend asks to borrow money, out of face, they transfer the loan from their own bank account to the friend, only to find that the friend refuses to repay the money and the bank comes after them instead. What should they do in this situation? The case's protagonist, Liu ***, encountered just such a problem. Around 2022, Zhang ***, who needed working capital, asked Liu *** to borrow money from a bank in her own name and then transfer the funds to him. Out of friendship, Liu *** agreed and signed a "Personal Loan Contract" with the bank. After the loan was disbursed, Liu *** immediately transferred all the funds to Zhang ***.

After that, Zhang * * * failed to repay the loan as agreed, and Liu * * * was also unable to fulfill his obligations to the bank. After the bank's collection efforts failed, it sued Liu * * *, demanding that he repay the principal, interest, penalty interest, and compound interest of the loan. As a result, Liu * * * found himself in an awkward situation of helping others borrow money while shouldering the debt himself: on the one hand, he faced the pressure of the bank's collection and credit reporting, and on the other hand, he was unable to recover the debt from the actual borrower.

At a critical moment, Liu * entrusted the Beijing Henglu Law Firm to handle the case for him/her.He NingningAttorney representation. Attorney He fixed the complete evidence chain, including the bank loan contract, loan disbursement records, transfer records, WeChat chat records, and overdue collection certificates, at the first time, accurately identifying the core fact that the nominal borrower and the actual user of the funds are separated, laying a foundation for subsequent step-by-step protection of rights.

The case went through two key stages: the first stage was to mediate the litigation with the bank and convert Liu's debt to the bank into installments to avoid further deterioration of his credit record; the second stage was to recover the debt from the actual borrower, Zhang, and confirm the ownership of the debt. On June 12, 2026, the two parties reached a mediation agreement, confirming that Zhang would repay the principal of 170,000 yuan and the loss of funds due to delayed repayment of 10,000 yuan, and agreed on the installment deadlines and strict default clauses. After the agreement was signed, the two parties jointly applied for judicial confirmation to the People's Court of Fengtai District, Beijing. The court issued the Civil Ruling No. (2026) Jing XX 06 Min Te (Mediation) XXX9.

However, when the first performance period (June 25, 2026) expired, Zhang * failed to make any payment, constituting a breach of contract. At this point, Liu * faced a new problem: even after receiving the court's ruling, the other party still refused to repay the money. How could Liu * apply for the enforcement of the recovered funds? Liu * once again entrusted He Ningning, a lawyer, to initiate the forced enforcement procedure.

II. The focus of the case

Under the situation where the nominal borrower and the actual borrower are separated, how to both mitigate the credit risk of the bank's recovery and establish a legally enforceable claim against the actual borrower?
After the judicial confirmation ruling is obtained, if the judgment debtor breaches the contract for the first time, how can we convert the rights on paper into actual recoveries of funds through the enforcement procedure?
Facing the risk that the debtor might transfer his/her property, how can we use the online investigation and control system to comprehensively locate the property available for enforcement and efficiently seize it?

III. Professional intervention by Hengluo Law Firm

The parties' arguments and defenses:The applicant (creditor), Liu **, claimed that he and Zhang ** have reached a mediation agreement confirmed by the court regarding the principal of the loan of 170,000 yuan and the loss of funds of 10,000 yuan. Zhang ** breached the contract in the first installment and should bear the liability for breach of contract and pay the interest for late performance. The debtor, Zhang **, did not raise any effective defense after being notified by the court and failed to fulfill any of his payment obligations.

He NingningAttorney's Representation Opinion:

Firstly, according to the effective Civil Ruling No. (2026) Jing XX 06 Min Te (Adj) XXX 9, the mediation agreement has been legally confirmed as having enforceable force. If the debtor fails to make the first payment on time, the agreement will trigger the enforcement of the entire remaining principal. Therefore, the conditions for applying for enforcement have been met.

Secondly, the request for enforcement is clear and specific: requiring the party subject to enforcement to pay the principal and the loss of funds occupation totaling 180,000 yuan; to pay the interest on the debt during the delay in performance calculated at an annual interest rate of 3% from June 25, 2026; and for the party subject to enforcement to bear all the enforcement costs. The facts are clear and the basis is sufficient.

Thirdly, in view of the risk that the debtor might transfer or hide his/her property, Attorney He promptly drafted and submitted the "Online Investigation and Control Application", requesting the court to conduct a comprehensive investigation and freeze, seize, and confiscate the debtor's bank deposits, online funds, vehicles, real estate, equity, wealth management, and other property within the limit of 180,000 yuan through the National Court Online Investigation and Control System, so as to seize the initiative in asset disposal from the source.

IV. Outcome of the case

InHe NingningUnder the professional and efficient representation of the lawyer, the court, relying on the online investigation and control system, found out the enforceable property under the name of the person subject to enforcement and completed the deduction of funds according to law. The party concerned, Liu **, finally successfully received the total amount of 180,902.47 yuan of the enforcement repayment and interest. The enforcement of the case was completed and successfully concluded, and all the creditor's rights were realized.

During the handling of this case, Attorney He cited Article 201 (Application for Judicial Confirmation of Mediation Agreements) and Article 243 (Where the person subject to enforcement fails to perform his obligations in accordance with the enforcement notice, the people's court shall have the right to inquire into, freeze, and transfer his deposits and other property) of the Civil Procedure Law of the People's Republic of China, as well as paragraph 2 of Article 11 of the Supreme People's Court's "Regulations on Several Issues Concerning the Handling of Property Preservation Cases by the People's Court" (the applicant for preservation may apply for online investigation and control in writing), providing a solid legal basis for the confirmation of mediation and enforcement, and ensuring that every step is in accordance with the law.

5. Hengluo Law Firm's Reminder

When dealing with financial transactions, it is essential to abide by legal norms and never help others with their funds by using one's own credit records or bank loans out of a sense of obligation. Once a loan dispute arises, it is necessary to promptly hire a professional lawyer. This not only involves striving to win the lawsuit, but also emphasizes the enforcement process, so as to truly turn the rights on paper into actual recoveries of funds.

This case is handled by Beijing Henglu Law Firm.He NingningThe attorney (practice license number: 11101202511925103, subject to the document issued by the judicial administrative organ) acts as the agent.

VI. Common Questions and Answers about the Enforcement of Private Lending Cases

Q: If I help a friend borrow money in my own name and then lend it to them, but the friend fails to repay the loan and the bank sues me, what should I do? A: As the counterparty to the loan contract, you need to fulfill your obligations to the bank first. However, you can recover the repayment from the actual borrower based on evidence such as transfer records and chat logs with the actual borrower. If necessary, you can entrust a lawyer to assert your rights through mediation or litigation.
Q: After receiving the court's mediation document or ruling, if the other party still refuses to repay the money, how can I apply for the enforcement of the recovered funds? A: If the other party fails to perform the obligation on time, you can apply for compulsory enforcement to the court that issued the document, submit an application for compulsory enforcement, and list the enforcement requests and factual reasons. After the court accepts the application, it will take enforcement measures in accordance with the law.
Q: What should I do if I can't find the other party's assets after applying for enforcement? A: You can submit an online asset investigation request, and the court will use the National Court Online Asset Investigation System to investigate and freeze/seize the assets under the name of the debtor, including bank deposits, WeChat/Alipay accounts, vehicles, and real estate.
Q: Is it necessary to have the mediation agreement legally confirmed by the court in order for it to be enforceable? A: After the court issues a civil ruling confirming the mediation agreement, it will have the same enforceability as a final judgment. If one party breaches the agreement, the other party can directly apply for enforcement without having to initiate another lawsuit.
Q: If the debtor delays in performance, can they claim additional interest? A: Yes. If the debtor fails to perform on time, they shall pay the interest on the debt during the period of delay in performance, the specific standard of which shall be calculated in accordance with the provisions of the effective document or the law.

Did you ever help a friend with a loan, only to end up getting scammed and saddled with debt? Attorney He Ningning successfully represented a client in a private lending enforcement case, helping the client recover the full amount of over 180,000 yuan in damages.