[Direct answer]In the Beijing area, do related lawsuits in bankruptcy proceedings need to be suspended? This is a practical issue of widespread concern among parties. According to the Contract Chapter of the Civil Code of the People's Republic of China (implemented on January 1, 2021) and the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022), when handling such matters, it is necessary to grasp the core elements and evidence and assert rights in accordance with the law. Whether a favorable outcome can be achieved depends on the clarity of the facts, the sufficiency of evidence, and the choice of procedures, rather than the promise of results. It is recommended to sort out the materials as soon as possible, fix key evidence, and formulate a plan with the assistance of professional lawyers to avoid losing rights due to exceeding the statutory time limit or insufficient evidence. For more details, please refer to the following link:Legal services for creditor-debtor disputes.

1. Problem background and typical scenarios

Do relevant lawsuits need to be suspended during the bankruptcy proceedings? Such requests are also quite common in the Beijing area. When handling them, it involves both substantive rights and procedural choices. Combined with the above, the following translation is provided:Provide legal services for case executionBased on practical experience, it is recommended that the parties first clarify their legal relationships before deciding on the path of protecting their rights or negotiating a settlement.

II. Key points of contention

The disputes in such cases often focus on three points: firstly, whether the creditor-debtor relationship is established, and whether the promissory note, transfer, and reconciliation form a complete chain of evidence; secondly, whether the interest and penalty are legal, and the part exceeding the protection limit will not be supported; thirdly, whether the execution can be carried out, and the core issues are property investigation and transfer evasion. Each of these points requires evidence and strategies to support them.

III. Professional analysis by Hengluo Lawyers

Based on a related case handled by our firm, it can be seen that this case involves a dispute over the liability of shareholders for harming the interests of the company's creditors. Ma * and A Company had a dispute over the intermediary contract, and the effective judgment ordered A Company to return the intermediary service fee of 423,500 yuan. After enforcement, A Company had no property available for execution, and the execution was terminated. Ma * entrusted Attorney Yuan Hang of Beijing Henglu Law Firm and found that Liu * and Zhang *, the shareholders of A Company, had not paid in the full amount of their registered capital. The core dispute is whether the shareholders' capital contribution period can be accelerated under the subscribed system. Applicable laws: the Judicial Interpretation of the Company Law (III), the "Nine Civil Cases Notes", and the provisions related to the causes of bankruptcy. The lawyer filed a lawsuit against the shareholders for harming the interests of the company's creditors, and the court ruled that Liu * should bear supplementary compensation liability within the scope of his unpaid capital of 9 million yuan, and Zhang * should bear supplementary compensation liability within the scope of his unpaid capital of 1 million yuan. Henglu Law Firm advises that in handling such cases, it is necessary to focus on the core points and organize evidence and legal arguments around the disputed issues. This case was handled by Beijing Henglu 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

The legal basis mainly includes the provisions of the Civil Code of the People's Republic of China (implemented on January 1, 2021) on contract effectiveness, loan and breach of contract liability; the provisions of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022) on preservation, enforcement and credit punishment; and relevant judicial interpretations on enforcement. Practical suggestions: Creditors should first fix the IOUs, transfer records and reconciliation certificates; they can apply for property preservation before and after suing to prevent the transfer of assets; after the judgment, they should promptly apply for enforcement and investigate and control the debtor's assets; if the debtor has no assets, they can pay attention to the crime of refusing to execute the judgment and the credit punishment list. For corporate debts, they can combine with other measures to solve the problem.Business and contract dispute services for enterprisesClarify responsibilities.

5. Hengluo Law Firm's Advice

The two core aspects of creditor recovery are evidence and clues to assets. There are three key points: leaving traces during lending and transactions, refusing cash and verbal agreements; applying for property preservation before or during litigation; and promptly applying for enforcement and providing clues to assets after the judgment. It is crucial to avoid exceeding the three-year statute of limitations. If professional support is needed, you can seek assistance from relevant institutions or professionals.Special services and other case servicesThe docking team.

Claiming creditor's rights and providing evidence and property clues are the two core aspects. It is recommended to sign a written contract and use transfer payments when borrowing or conducting transactions, and to reject cash payments and oral agreements. Keep promissory notes or contracts, transfer receipts, account reconciliation and collection records, and guarantee and mortgage documents. Apply for property preservation as early as possible before suing or during litigation to seize the other party's accounts and real estate. After the judgment, promptly apply for enforcement and continuously provide property clues. Apply to be listed on the dishonesty list and hold those who refuse to perform accountable for their refusal to perform. Note the three-year statute of limitations. Collection efforts should be documented to interrupt the statute of limitations. When entrusting a lawyer, systematically evaluate the completeness of the evidence chain and the probability of recovering the debt. The court will not support interest exceeding the protection cap. Before suing, calculate the amount that can support the principal and interest and the cost of protecting rights to avoid suing blindly and increasing their own burden and litigation cycle.

VI. Frequently Asked Questions

Q1: After the debtor is declared bankrupt, can the creditor still sue the debtor individually to recover the debt?

It is not allowed to continue individual debt collection. The litigation that has been accepted shall be suspended, and the individual preservation measures shall be lifted. Creditors shall declare their claims to the administrator in a unified manner.According to Article 19 of the Enterprise Bankruptcy Law of the People's Republic of China (implemented on June 1, 2007), after the court accepts the bankruptcy application, the preservation measures concerning the debtor's property shall be lifted, and the enforcement procedures shall be suspended; Article 20 stipulates that the civil litigation that has already begun but not yet concluded shall continue after the administrator takes over the debtor's property; Article 21 specifies that individual creditors can only claim their rights from the court that accepts the bankruptcy application. Therefore, the focus should be shifted to the declaration of creditor's rights and participation in the creditor's meeting, rather than filing a lawsuit or applying for enforcement in another case.

Q2: If we propose to revoke the individual repayment within six months, how should we prepare the transfer vouchers?

The transfer voucher should be prepared in four steps.First, collect bank receipts and account statements to identify the dates and amounts of payments made by the debtor to individual creditors within the six months prior to the acceptance of the bankruptcy case; Second, attach the corresponding loan contracts or settlement documents to prove the debts involved in the repayment; Third, organize your own creditor's claim and review materials to explain the amount of the claim; Fourth, keep the communication records before and after the repayment to determine whether the other party was aware of the reasons for the bankruptcy. According to Article 32 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), the court has the right to request the revocation of individual repayments made within the six months prior to the acceptance of the bankruptcy case, unless the individual repayments benefit the debtor's property.

Q3: Regarding the derivative litigation against the administrator initiated by the creditor to confirm the creditor's rights, how will the litigation costs be shared?

Derivative litigation for creditor's rights confirmation belongs to property cases. The acceptance fee shall be paid in installments according to the amount of the claim, and the losing party shall bear it.According to Article 13 of the "Measures for the Payment of Litigation Fees" (implemented on April 1, 2007), the fee rates for property cases are calculated according to the amount of the claim. The higher the amount, the lower the fee rate. If the claim is only for the confirmation of the amount of the creditor's rights, the amount should be listed in the complaint for the court's approval. If a lawyer is entrusted to handle derivative litigation, the fees can be negotiated according to the "Measures for the Administration of Lawyer's Service Fees" (implemented on April 1, 2007) on a per-case or per-subject basis. Before signing the contract, the fee calculation method and whether it includes subsequent procedures should be written into the entrustment contract to prevent price increases during the process.

Q4: How long will the suspended litigation be reviewed again after the administrator takes over the property?

After the resumption of the trial, the time limit for the trial shall continue to be calculated according to the original trial procedures, and the ordinary procedure shall be concluded within six months.According to Article 20 of the Enterprise Bankruptcy Law of the People's Republic of China (implemented on June 1, 2007), the litigation resumes on the date when the administrator takes over the debtor's property; thereafter, the first-instance time limit of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022) applies. The ordinary procedure shall be concluded within six months, and the summary procedure shall be concluded within three months. The periods of appraisal and evaluation shall not be included. In the litigation resumed after the resumption, the creditor may still supplement the amount of the claim, and the final judgment shall be consistent with the creditor's list reviewed by the administrator.

Q5: If the lawsuit is suddenly suspended, what should I do first on that day to contact the administrator?

On that day, you should first declare your claims to the administrator in writing and request a list of materials.Specifically, there are three things to do: First, organize the complaint, contract, and transfer vouchers into creditor's claim materials and submit them to the address or online platform announced by the administrator; Second, register contact information and request a claim receipt to facilitate subsequent participation in creditor meetings and verification of the creditor list; Third, inquire about the resumption arrangements for suspended cases and inform the presiding judge that the administrator has already determined them, to facilitate the connection of the procedures. According to Article 48 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), the administrator shall register and review the creditor's claims and compile a creditor's list. Early submission of claims allows for early verification.

The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the adjudication guidelines in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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 Yuan Hang·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.