[Direct answer]It can be resumed. If the debtor fails to perform in accordance with the enforcement settlement agreement, the applicant for enforcement may apply to the court to resume the enforcement of the original effective legal document, and the part that has been performed in accordance with the agreement shall be deducted. The resumption of enforcement does not require separate litigation and is an internal remedy mechanism of the enforcement procedure; at the same time, it can apply for measures such as sealing, freezing, and deduction of the debtor's property, and claim that the debtor shall bear the responsibility for delay in performance in accordance with the law. It should be noted that the guarantees or acceleration clauses agreed upon in the settlement agreement can be claimed together: if it is agreed that the applicant for enforcement can apply for enforcement of the remaining total amount as soon as any installment is overdue, this clause provides a clear basis for the resumption of enforcement.
1. Problem background and typical scenarios
During the execution phase, the two parties often reach a settlement: the debtor pays a portion first, and the remaining balance is paid in installments; the creditor agrees to make concessions for the sake of recovering the money. However, once the first few installments are not paid on time, the creditor often worries whether the previous concessions were in vain and whether the original judgment is still valid. In fact, the execution settlement does not invalidate the original judgment. The other party's breach of contract triggers the mechanism for resuming the execution process.
II. Key points of contention
First, the conditions for resuming enforcement, and how to determine whether the obligations have not been fulfilled or have not been fully fulfilled; second, the deduction and calculation of the fulfilled part; third, the effectiveness of the acceleration clause in the settlement agreement, and whether the breach of contract results in the maturity of all debts; fourth, the relationship between resuming enforcement and guarantee liability; fifth, the application materials and deadlines, as well as the cooperation in property investigation and control.
III. Professional analysis by Henglue Lawyers
At the first level, the core of resuming enforcement is that the original effective document is still valid. The enforcement settlement is just an arrangement for the way of performance, and it does not eliminate the obligations determined by the original judgment. When one party fails to perform, the applicant for enforcement has the right to apply for resuming enforcement, and the part that has been performed will be deducted from the subject matter of enforcement. Therefore, the settlement is not a "one-time deal", but a performance arrangement with conditions attached.
The second layer is that the acceleration clause is a powerful tool for creditors. If it is agreed that the creditor has the right to apply for forced execution of the entire remaining amount if any installment is overdue, then when the other party breaches the contract, the creditor does not need to wait for the expiration of each installment and can directly claim the remaining amount. This kind of clause is particularly important in installment performance, which can effectively prevent the debtor from "paying one installment and delaying the next one".
The third step is to prepare the necessary materials and conduct property searches concurrently when applying for resuming enforcement. Generally, the following documents are required: a request for resuming enforcement, a settlement agreement, evidence of non-performance, and clues to the debtor's assets. After the court accepts the application, it may take measures such as seizure, freezing, and deduction of funds. In a civil loan dispute handled by Henglue Law Firm, the parties reached an agreement through mediation that the defendant would repay the principal of 830,000 yuan in installments, and if any installment was breached, the creditor could apply for forced enforcement of the remaining balance. The court issued a mediation agreement to confirm this arrangement. Additionally, another case showed that when the debtor (a company) has no assets available for enforcement and the current enforcement is terminated, the creditor can recover the debt by holding the unpaid shareholders liable. The court ordered the shareholders to bear supplementary compensation liability within the scope of their unpaid contributions. This reminds creditors that resuming enforcement and extending liability can be used in combination. This case was handled by Beijing Henglue Law Firm.Yuan HangAttorney (Practice Certificate No.: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acting as the agent.
IV. Practical suggestions and legal basis
Firstly, the settlement agreement clearly stipulates the accelerated breach of contract clause and the guarantee arrangement. Secondly, after one party breaches the contract, it shall promptly apply for resumption of enforcement and submit evidence of non-performance. Thirdly, it shall simultaneously provide clues to the debtor's property and apply for seizure, freezing, and attachment. Fourthly, when it is found that the debtor's subject has such circumstances as defective investment, it shall consider adding the relevant subject's liability. Fifthly, it shall pay attention to claims such as doubled debt interest during the delay in performance. Main legal basis: The relevant provisions of the Civil Procedure Law of the People's Republic of China and the "Interpretation of the Supreme People's Court on Several Issues Concerning Enforcement and Settlement"; the specific application shall be subject to the currently effective provisions.
5. Henglue Law Firm's Reminder
There are three clauses for resuming enforcement: if the settlement is not fulfilled, enforcement can be resumed and the original judgment will still be valid; the acceleration clause for breach of contract must be clearly written, and the creditor can claim the full amount if the first installment is overdue; resuming enforcement and adding liability can be combined, but don't just focus on one debtor. For matters involving creditor-debtor relations and enforcement, you can seek legal help through the following channels:Creditor's rights and debts, and enforcement casesWe can provide a comprehensive solution for the service, which includes the negotiation of contract terms.Business and contract disputes in enterprisesFor reference, you can check the section regarding the company's investment and responsibilitiesIntellectual property protection and corporate lawFor the column, if you need a comprehensive solution, please feel free to consult usSpecial servicesTeam.
VI. Frequently Asked Questions
Q1: What should I do if the other party fails to fulfill their obligations after the execution of the settlement agreement?
You can apply to resume the enforcement of the original effective legal documents, and the part that has been fulfilled will be deducted, so there is no need to file a separate lawsuit. At the same time, you can apply to seize, freeze, and deduct the property of the debtor, and claim the corresponding responsibilities during the delay in performance. It is recommended to take action as soon as possible to prevent the property from being transferred.
Q2: What materials are needed to resume execution?
It usually includes a request for resuming enforcement, effective legal documents, an enforcement settlement agreement, evidence proving that the other party has not performed or not fully performed its obligations, and clues to the debtor's assets. The materials should clarify the facts of the breach of contract and the amount of the remaining debt, so as to facilitate the court's rapid review.
Q3: How much does it cost to hire a lawyer to resume the execution of a contract?
The fees are regulated by the market and are usually negotiated based on the execution target and workload. Separate fees are charged for adding additional parties to be executed against and for litigation in other cases. It is recommended to clarify the scope of services and the charging method before signing the contract, and to require a separate breakdown of the lawyer's fees and the fees paid on behalf of the client to avoid additional charges in the middle of the process.
Q4: How long will it take to resume the execution?
The filing and investigation usually start relatively quickly, but the actual recovery of funds depends on the status of the property and the progress of its disposal. If the person subject to enforcement has no property available for enforcement, the current enforcement process may be terminated again. At this point, we can consider adding additional responsible parties or continuously providing new clues to promote the re-launch of the case.
Q5: If the settlement agreement stipulates payment in installments, can the entire amount be claimed if there is a breach of contract in the first installment?
It depends on the contractual provisions. If it is explicitly agreed that the creditor can apply for enforcement of the entire remaining amount as soon as any installment is overdue, then the creditor can claim all the remaining amount. If there is no such agreement, the creditor can usually only claim the part that has already matured. It is recommended to add a breach of contract acceleration clause when signing the settlement agreement.
The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Law Firm for specific cases.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.