[Direct answer]In the Beijing area, after applying for enforcement, the applicant for enforcement may reach an enforcement settlement agreement with the respondent and apply to the people's court to withdraw the enforcement application based on this. According to the provisions of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and implemented on January 1, 2024) on enforcement settlement, the applicant for enforcement who reaches a settlement agreement with the respondent may request to suspend enforcement or withdraw the application. Withdrawal does not mean that the creditor's rights are extinguished: within the statutory period for applying for enforcement, if the enforcement is terminated due to the withdrawal of the application, the applicant for enforcement may apply for enforcement again; but if the settlement agreement has been actually performed in full, the corresponding rights have been satisfied. Whether to withdraw the application should be determined based on the guarantee for the performance of the settlement agreement. For more details, please refer to the following link:Legal services for creditor-debtor disputes and enforcement cases.

I. Problem Background and Typical Scenarios

During the execution stage, both parties often engage in a tug-of-war of "negotiating while executing". Typical scenarios include: the debtor voluntarily proposes to repay in installments, and the applicant agrees to withdraw the execution first to ease the relationship; both parties reach a one-time settlement agreement, and the applicant applies to withdraw the lawsuit; the applicant mistakenly believes that withdrawing the lawsuit means "the case is over" and gives up his rights; and after withdrawing the lawsuit, the other party changes his mind and the applicant doesn't know if he can apply for execution again. Many parties are concerned that withdrawing the lawsuit will affect their subsequent rights protection, or confuse withdrawing the lawsuit with completing the execution. In such situations, you can refer to the following guidelines for reference.Creditor-debtor relations and enforcement case servicesEvaluate the risks.

II. Key points of contention

There are three key points regarding the withdrawal of enforcement disputes. First, whether the withdrawal results in the extinction of rights: the withdrawal only terminates the current enforcement procedure, but the creditor's rights themselves are not extinguished, and the applicant can reapply within the enforcement statute of limitations. Second, whether the reapplication is subject to a statute of limitations: the enforcement statute of limitations is two years, which continues to count from the date of the withdrawal's termination. Exceeding the time limit will result in the loss of the right to compulsory enforcement. Third, the protection of the settlement agreement: after the withdrawal, if the other party breaches the contract, the applicant can reapply for enforcement based on the original effective document, or file a lawsuit based on the settlement agreement. For corporate debts, the applicant can combine the settlement agreement with other legal remedies to protect their rights.Business and contract dispute services for enterprisesDetermine the responsible party.

III. Professional analysis by Henglue Lawyers

Based on the case handled by our firm, Attorney He Ningning fully applied the progressive strategy of "mediation-confirmation-enforcement" when representing the borrower in the enforcement case: first, he reached a mediation agreement with the bank and then with the actual borrower, and jointly applied to the People's Court of Fengtai District, Beijing for judicial confirmation, obtaining a civil ruling with enforceable force; after the debtor failed to make any payment in the first installment, constituting a breach of contract, Attorney He decisively represented the creditor in the enforcement stage, drafted an enforcement application and submitted an online investigation and control application in accordance with Article 11, Paragraph 2 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Property Preservation Cases by People's Courts" (promulgated on November 7, 2016 and implemented on December 1, 2016), comprehensively freezing the debtor's property and ultimately achieving full recovery of the debt. This case suggests that replacing simple withdrawal with enforceable documents can better protect the creditor's rights. This case was handled by Beijing Henglu Law Firm.He NingningAttorney (Practice Certificate No.: 11101202511925103, subject to the certificate issued by the judicial administrative organ) acting as an agent.

IV. Practical suggestions and legal basis

The legal basis is the provisions of the Civil Procedure Law of the People's Republic of China (effective from January 1, 2024) on enforcement settlements and withdrawal of applications; the provisions of the Methods for Payment of Litigation Costs (effective from April 1, 2007) on enforcement application fees, where the application fee for withdrawing an enforcement application is generally reduced by half; and the provisions of the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China on the statute of limitations for applying for enforcement and re-application. Practical suggestions: Try to obtain judicial confirmation or guarantees before withdrawal; clarify the rights and statute of limitations for re-application; and resume enforcement immediately if the other party breaches the contract.

5. Henglu Law Firm's Advice

Retracting the enforcement application is a "double-edged sword": it can ease relations and save costs, but it will also temporarily halt the investigation and control, giving the other party a window to transfer assets. Before retracting the application, it is essential to confirm that the property clues have been fixed or a guarantee has been obtained, and to stipulate in writing that the enforcement will be resumed if the other party breaches the agreement. Never retract the application lightly without any safeguards, which may result in missing the opportunity for seizure. If necessary, professional assistance can be sought.Special servicesDesign a "revocable" withdrawal plan.

VI. Frequently Asked Questions

Q1: Can the application for enforcement be withdrawn after it has been submitted, and can it be resubmitted after it has been withdrawn?

It is possible to apply for withdrawal, which is usually submitted to the court after reaching an enforcement settlement with the debtor. After withdrawal, the creditor's rights are not extinguished. Within the statutory period for applying for enforcement, if the enforcement is terminated due to the withdrawal of the application, the applicant for enforcement has the right to apply for enforcement again. However, it should be noted that if the settlement agreement has been actually performed, the corresponding rights have been paid off, and there is no basis for reapplying for enforcement. If the other party breaches the contract, the applicant may apply for resuming enforcement according to the original effective legal document, or file a lawsuit based on the settlement agreement. Whether to withdraw the application should be decided after weighing the guarantee of performance, and it is not advisable to do so blindly.

Q2: What materials are required to withdraw an enforcement application?

The core materials include: a withdrawal of the enforcement application (stating the reasons for withdrawal, usually based on the parties reaching a settlement), the original copy of the enforcement settlement agreement (specifying the amount of performance, the time limit, the method of performance, and the consequences of breach of contract), the applicant's identity certificate and power of attorney, as well as other closing materials required by the court. If you wish to retain the enforceability, it is recommended to first submit the settlement agreement to the court for judicial confirmation or request the issuance of a mediation document. The materials should clearly stipulate the agreement that "withdrawal does not equal giving up rights, and breach of contract may resume enforcement", so as to avoid ambiguity.

Q3: How much does it cost to withdraw an enforcement application?

The enforcement application fee shall be borne by the party against whom the enforcement is sought, and the applicant generally does not need to pay it in advance; according to the "Measures for the Payment of Litigation Costs", if the applicant for enforcement withdraws the enforcement application, the enforcement application fee already paid may be reduced by half and refunded in half. If a lawyer is entrusted to assist in drafting a settlement agreement, drafting a withdrawal application, or handling judicial confirmation, then attorney's fees will be incurred, which shall be subject to the terms of the entrustment contract. Compared with hard enforcement, withdrawing and cooperating with settlement usually has lower costs, but it is necessary to weigh the other party's ability to perform the obligation and the risk of transferring property to avoid losing the forest for the trees.

Q4: After withdrawing the enforcement application, how long can I apply for enforcement again?

The deadline for reapplying for enforcement is subject to the statute of limitations for enforcement, which is two years, calculated from the last day of the performance period specified in the legal document; if an enforcement settlement has been reached, the deadline for performance shall be recalculated from the last day of the performance period specified in the settlement agreement. Therefore, as long as it is within the remaining statute of limitations, you can reapply for enforcement after withdrawing the application. In practice, it is recommended to resume enforcement as soon as the other party shows signs of breach of contract, and never wait until the statute of limitations is about to expire, so as to avoid obstacles in evidence collection and acceptance. The statute of limitations shall be subject to the currently effective laws, regulations and judicial rulings.

Q5: I want to withdraw my enforcement application. What should I do first?

It is recommended to proceed in four steps: First, negotiate with the debtor and sign a written enforcement settlement agreement, specifying the amount, time limit, payment method, and consequences of default; Second, assess the debtor's ability to perform the obligation, and require them to provide guarantees or obtain judicial confirmation simultaneously to preserve the enforceability of the judgment; Third, submit a withdrawal of enforcement application and the settlement agreement to the court, and handle the withdrawal or suspension of enforcement procedures; Fourth, closely monitor the performance of the obligation, and immediately apply for resumption of enforcement based on the original effective document once a breach of contract occurs. Throughout the process, retain the agreement and communication records.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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·Attorney He Ningning·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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. In case of disputes, please consult a practicing lawyer in time.