[Direct answer]In the Beijing area, if the other party fails to perform its obligations after the implementation of the settlement agreement, the applicant for enforcement may still apply for resumption of enforcement. According to the provisions on settlement agreements in the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and implemented on January 1, 2024), if a party fails to perform the settlement agreement, the applicant for enforcement may apply for resumption of enforcement of the original effective legal documents or file a lawsuit with the enforcement court regarding the performance of the settlement agreement. The resumption of enforcement targets the original enforcement basis such as judgments and rulings. The part that has been performed shall be deducted and no double compensation shall be allowed. The key lies in fixing the evidence of breach of contract in time and taking action within the statute of limitations for applying for enforcement. For more details, please refer to the relevant provisions.Legal services for creditor-debtor relations and enforcement cases.

I. Problem Background and Typical Scenarios

The implementation of a settlement agreement is supposed to be a flexible solution to balance the interests of both parties, but it's not uncommon for "reneging on the settlement" to occur. Typical scenarios include: the debtor verbally committing to pay in installments but defaulting on the first installment; transferring property or evading performance after signing the settlement agreement; the applicant mistakenly believing that the settlement equals giving up the right to enforce the judgment and failing to resume enforcement in time; and both parties being hesitant between "resuming enforcement of the original judgment" and "filing a new settlement agreement". Many parties find it difficult to recover the money because they missed the opportunity to seize the debtor's assets. When encountering such situations, you can refer to the following methods for reference.Creditor-debtor relations and enforcement case servicesEvaluate the path.

II. Key points of contention

After the reconciliation, there are three key points for resuming the enforcement process. Firstly, the subject of enforcement: the party can apply for the resumption of the enforcement of the original effective legal documents, rather than directly enforcing the reconciliation agreement. If the party files a separate lawsuit against the reconciliation agreement, the enforcement basis will change to the new judgment. Secondly, deduction of the part already performed: when resuming the enforcement, the amount already paid in accordance with the reconciliation agreement should be deducted to avoid double compensation. Thirdly, statute of limitations and property: the resumption of enforcement is still subject to the statute of limitations for applying for enforcement, and if the other party violates the contract and transfers the property, action must be taken as soon as possible. For company debts, the party can take corresponding measures in accordance with the law.Business and contract dispute resolution services for enterprisesDetermine whether it is possible to add new shareholders.

III. Professional analysis by Henglue Lawyers

Based on the case handled by our firm, Attorney He Ningning adopted a dual protection strategy of "judicial confirmation + enforcement" in dealing with loan disputes: First, she facilitated a mediation agreement between the parties and jointly applied 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 immediately represented the creditor in the enforcement stage, drafted an application for enforcement, 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" (issued on November 7, 2016 and implemented on December 1, 2016), comprehensively freezing the debtor's bank deposits, WeChat/Alipay accounts, vehicles, real estate, equity, and other assets, ultimately achieving full recovery of the loan. This case demonstrates that replacing ordinary settlements with enforceable documents eliminates the need for separate litigation and allows for direct enforcement in the event of a breach of contract. 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 on enforcement mediation and resumption of enforcement in the Civil Procedure Law of the People's Republic of China (effective January 1, 2024); the provisions on enforcement application fees in the Measures for the Payment of Litigation Costs (effective April 1, 2007); and the provisions on the statute of limitations for enforcement applications, resumption of enforcement, and settlement agreements in the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China. Practical suggestions: Try to obtain judicial confirmation or guarantees for the settlement; immediately resume enforcement of the original document in case of breach of contract; keep proofs of the fulfilled part for deduction; and apply for property investigation and control simultaneously to prevent transfer of assets.

5. Henglue Law Firm's Reminder

The settlement agreement itself cannot be directly enforced, which is the greatest risk point. The safest approach is to incorporate the settlement content into a judicial confirmation ruling or a mediation agreement, so that it can be enforced without the need for a separate lawsuit in the event of a breach. If it's just an ordinary written settlement agreement, the other party should apply for the resumption of enforcement of the original effective document as soon as possible after the breach, and immediately apply for property investigation and control to prevent the other party from transferring assets during the window of opportunity. Never wait too long to take action out of consideration for the relationship and miss the window of opportunity for seizure. If professional assistance is needed, you can seek help from a lawyer or law firm.Special servicesDesign a strong guarantee and settlement solution.

VI. Frequently Asked Questions

Q1: After the execution of the settlement agreement, if the other party fails to fulfill its obligations, can I still apply for enforcement?

Yes. If a party fails to perform the settlement agreement, the applicant for enforcement has the right to apply for resuming the enforcement of the original effective legal document, and may also bring a lawsuit to the enforcement court for the performance of the settlement agreement. Resuming enforcement directly targets the original judgment, ruling and other enforcement basis, with a simpler procedure and no need to obtain a new enforcement title; while suing for the settlement agreement requires obtaining a new judgment first before enforcement. The party may choose one of the two methods. The part already performed in accordance with the settlement agreement shall be deducted when resuming enforcement, and no double compensation shall be allowed. It is recommended to resume enforcement as soon as possible after a breach of contract.

Q2: What materials are needed to resume execution?

The core materials include: the original effective legal documents and the basis for enforcement, the previously reached enforcement settlement agreements, evidence proving the other party's breach of contract (bank statements showing non-payment on schedule, collection records, communication recordings, etc.), an explanation of the original enforcement case number and the method of closing the case, and an application for resuming enforcement. If the other party has partially fulfilled their obligations, they should provide proof of performance for deduction. If a lawyer is entrusted to handle the case, a power of attorney and the lawyer's letter are required. The materials should clearly prove that "the settlement agreement has taken effect and the other party has failed to perform according to the agreement", and the court will then rule to resume enforcement.

Q3: How much will it cost in attorney's fees and enforcement fees to resume the enforcement process?

After the resumption of enforcement, the application fee for pre-enforcement will generally not be charged again. The relevant fees will be deducted from the enforcement funds in accordance with the law after the enforcement is completed, and shall be borne by the debtor; the specific provisions shall be subject to the "Measures for the Payment of Litigation Costs" (effective as of April 1, 2007). If you entrust a lawyer to assist in drafting the resumption application, fixing the evidence of breach of contract, or advancing the investigation and control of property, attorney's fees will be incurred, which shall be in accordance with the provisions of the entrustment contract and there is no unified standard. It is recommended to evaluate the possibility of recovering the payment at the early stage of the other party's breach of contract, and decide whether to resume enforcement after weighing the attorney's fees against the amount that can be recovered.

Q4: After the execution and settlement, how long can I apply for the resumption of execution within?

The enforcement of the recovery shall be subject to the statute of limitations for application for enforcement, which is two years, calculated from the last day of the performance period stipulated in the settlement agreement; if the other party partially breaches the contract, the corresponding rights shall be calculated from the date of the breach of contract. Therefore, as long as it is within the remaining statute of limitations, the applicant can apply for the resumption of enforcement. In practice, it is recommended that the applicant initiate the resumption of enforcement immediately after the first breach of contract and apply for property investigation and control at the same time. It is crucial to avoid waiting and delaying, which may lead to the transfer of assets or the expiration of the statute of limitations. The specific starting point shall be subject to the currently effective laws, regulations and judicial rulings.

Q5: If the other party fails to fulfill the settlement agreement, what should I do first?

It is recommended to proceed in four steps: First, fix the evidence of breach of contract, collect the payment records of unpaid debts, and the records of collection and communication, and confirm the performance milestones agreed upon in the settlement agreement; Second, calculate the amount of performance and non-performance, and prepare the basis for deduction; Third, submit the application for resuming enforcement and related materials to the original enforcement court, requesting to resume the enforcement of the original effective legal documents, and simultaneously apply for online investigation and control, and seizure and freezing of property; Fourth, if you choose to sue the settlement agreement separately, file a lawsuit with the enforcement court. It is more efficient to resume the enforcement of the original legal documents first.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations 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 evidence materials, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney He Ningning·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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.