[Direct answer]It can be pursued through negotiation, sending letters of reminder, litigation or arbitration, applying for property preservation and enforcement, etc. The key is to fix the creditor's vouchers and transaction evidence, and timely claim to interrupt the statute of limitations. According to Article 188 of the Civil Code of the People's Republic of China, the statute of limitations for claiming civil rights protection in the people's court is generally three years, calculated from the date when the right holder knows or should know that his rights have been infringed and the date when the obligee knows or should know that his obligations have been violated. For inter-enterprise arrears, the claimants usually claim the principal, the losses of overdue payment, and the reasonable costs of protecting their rights according to the contract; for those with agreed overdue payment penalties, they shall claim the losses of overdue payment according to the agreement; for those without an agreement or with an unclear agreement, they may refer to the loan market quotation interest rate announced by the National Interbank Funding Center to claim the losses of overdue payment. When handling such cases in Beijing, timely preserving and fixing evidence often determines the ultimate effect of recovering the money owed.

1. Problem background and typical scenarios

There are typically three common scenarios: First, the other party delays payment on the grounds of quality issues or settlement disputes after supplying goods or services. Second, the other party's company is facing liquidity issues, and the outstanding debts involve multiple lawsuits, posing a risk of asset transfer. Third, the two parties have a long-term cooperative relationship, and due to considerations of face, they fail to collect the debts in a timely manner, resulting in the statute of limitations approaching. The key to resolving corporate debt disputes lies in whether the evidence chain is complete and whether timely action is taken. Delays often turn recoverable debts into bad debts. In addition, before suing, it is also necessary to verify whether the debtor has been sued by other creditors, or whether there are signs of production suspension, layoffs, or company liquidation, so as to adjust the recovery strategy in a timely manner.

II. Key points of contention

The dispute focuses on four points: Firstly, the determination of the principal amount of the debt and the payments made needs to be corroborated by the contract, settlement documents, and payment receipts; Secondly, the calculation standard for losses caused by overdue payments. If there is an agreement, the parties shall follow the agreement; if there is no agreement, the parties may claim according to the loan market reference interest rate; Thirdly, the bearing of attorney's fees and litigation costs. If there is an agreement in the contract, the parties shall follow the agreement; if there is no agreement, the court may determine the amount based on the circumstances of the breach of contract; Fourthly, the determination of the responsible subject. For one-person companies, shareholders with insufficient capital contributions, or related companies, the relevant subjects may be held liable for the losses.

As for this focus, we need to pay attention to the guarantee method, the guarantee period, and the statute of limitations, in order to prevent the entity rights from being impaired due to the dormancy of rights.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm once represented a case involving the recovery of the purchase price and damages for late payment under a sales contract. A Beijing-based trading company supplied equipment to the other party, and the two parties signed a "Purchase Contract". The company actually supplied 365 sets of equipment with a total price of 375,950 yuan, but the other party only paid 92,700 yuan. After the two parties signed the "Engineering Material Settlement Confirmation Letter", the other party still failed to make payments as agreed. After attorney Li Yonghui accepted the case, he reviewed the contract, the settlement confirmation letter, and the payment vouchers, and argued that the contract was legal and valid, and that the other party's late payment had exceeded one year. Therefore, the damages for late payment should be calculated based on the lending market interest rate plus 30% to 50%, and the attorney's fees and arbitration fees should also be claimed. The arbitration tribunal supported the claims for the principal of the purchase price, interest on late payments, and arbitration fees; regarding the attorney's fees, although there was no explicit agreement in the contract, considering that the dispute was caused by the respondent's breach of contract, the arbitration tribunal partially supported the applicant's claim for 50,000 yuan in attorney's fees, and ruled that the respondent should pay 30,000 yuan in attorney's fees. Finally, the arbitration tribunal ruled that the respondent should pay the purchase price of 27,197.15 yuan, and calculate the damages for late payment based on 1.5 times the lending market interest rate, and compensate for the attorney's fees of 30,000 yuan, with the arbitration fees of 18,048 yuan to be borne by the respondent. This case was handled by Beijing Henglue Law Firm.Li YonghuiThe attorney (practice certificate number: 11101199611955812, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action list: First, organize contracts, orders, delivery notes, acceptance notes, reconciliation statements, and invoices to form a complete chain of evidence for transactions and outstanding debts; Second, send written collection notices or use methods that can leave records to interrupt the statute of limitations; Third, identify the property clues of the other party's enterprise and responsible persons, and apply for pre-litigation or in-litigation preservation when necessary; Fourth, choose litigation or arbitration according to the dispute resolution method stipulated in the contract; Fifth, if the other party still fails to perform after the judgment or award takes effect, apply for compulsory enforcement in a timely manner. For matters involving the investigation and relief of enforcement property, you can refer to the relevant provisions.Creditor's rights and debts, and enforcementFor those involved in the design and review of contract terms, you can learn more about it.Business and contract disputes in enterprisesLegal basis: Articles 577, 578, and 585, and Article 188 of the Civil Code of the People's Republic of China (all of which came into effect on January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, original documents such as delivery notes, acceptance reports, and reconciliation statements should be preserved during the transaction process, as it is often difficult to obtain these documents afterwards. Secondly, it is essential to keep records of debt collection efforts, as written letters and chat records can serve as evidence to interrupt the statute of limitations. Thirdly, including provisions on breach of contract liabilities for late payments and attorney's fee responsibilities can help claim reasonable damages during debt recovery. Fourthly, if you detect any signs of the other party transferring assets, you should promptly take protective measures, such as applying for a preservation order through legal channels.Creditor's rights and debts, and enforcementThe column explains the specific measures of the execution stage. Fifthly, if the other party is a one-person company or there are situations such as the shareholders' capital being untrue or the withdrawal of capital, it can be considered to claim the shareholders' liability at the same time and expand the sources of repayment.

VI. Frequently Asked Questions

Q1: What evidence is needed to sue a company for unpaid debts?

Generally, this includes contracts or orders, delivery notes and receipt notes, acceptance or settlement documents, invoices, account statements, payment vouchers, and collection records. The above-mentioned evidence needs to corroborate each other to form a complete chain, proving that the transaction is genuine, the payment is due, and the debt has not been settled. It is usually difficult to obtain support with only oral statements or unilateral records. It is recommended to supplement the written evidence as soon as possible.

Q2: Can I claim interest on late payments?

Yes. If the contract stipulates a penalty or interest for late payment, the party may claim according to the agreement; if there is no stipulation or the stipulation is unclear, the party may claim the loss of late payment by referring to the loan market quotation interest rate announced by the National Interbank Funding Center. If the delay is long and the stipulation is clear, the court or arbitration institution will usually support the claim for interest within a reasonable range.

Q3: Can I make the other party bear the attorney's fees?

If the contract clearly stipulates that the breaching party shall bear the attorney's fees, the party may claim them in accordance with the agreement; if the contract does not stipulate it, if the dispute is caused by the other party's breach of contract, the court or arbitration institution may, in light of the circumstances, support a portion of the reasonable attorney's fees. It is recommended to stipulate in the contract that the party in default shall bear the attorney's fees, preservation fees, and other legal protection expenses.

Q4: How long does it usually take to recover the arrears?

The first-instance ordinary procedure generally lasts for six months, and the summary procedure lasts for three months; for those applying for arbitration, the time limit for review shall be determined in accordance with the rules of the respective arbitration institutions. If the other party appeals or applies for a retrial, the time period will be extended accordingly. It is recommended to simultaneously take measures to preserve the property to increase the likelihood of obtaining repayment from the effective legal document.

Q5: What should I do if the other party still refuses to repay after the judgment?

You can apply to the court for enforcement within the statutory time limit. The period for applying for enforcement is generally two years. During the enforcement process, you can apply for inquiry, seizure, freezing, and deduction of the other party's property. If eligible, you can also apply for restricting high-consumption and being included in the list of dishonest people. After obtaining clues to the property, you should submit them to the court in time to promote the enforcement to be in place.

The above answer is based on the judicial practice in the Beijing area. The adjudicative opinions in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, so as to avoid missing the statutory time limit.Legal services for creditor-debtor disputes·Attorney Li Yonghui·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective 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 you encounter disputes, please consult a practicing lawyer in time.