[Direct answer]If you sue someone for not repaying a debt, you should first collect evidence such as loan notes, bank or WeChat transfer records, and collection records. Confirm the jurisdiction of the court in the defendant's residence or the place of performance of the contract, and file a lawsuit in accordance with Article 122 of the Civil Procedure Law. The more complete the evidence chain is, the easier it is to gain support. If you have doubts about the other party's ability to perform the contract, you can set a clause on accelerated maturity in the event of default in the lawsuit or mediation, and the mediation agreement also has compulsory force. It is recommended to entrust a lawyer to sort out the evidence as soon as possible. For more details, please refer to the following link:\nLegal services for creditor-debtor disputesAndBeijing Henglu Law Firm.

I. Legal basis and interpretation of provisions

1. Article 667 of the Civil Code of the People's Republic of China (effective from January 1, 2021)

A loan contract is a contract in which the borrower borrows money from the lender and returns the loan with interest upon maturity. This article defines the basic framework of the lending relationship. Both parties to the loan should clarify the intention of the loan in writing or by other fixed means. Loans between natural persons are established upon delivery, so the combination of a promissory note and a transfer is a complete creditor's claim voucher, and a single voucher is prone to disputes.

2. Article 122 of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021, and implemented on January 1, 2022)

The lawsuit must meet four conditions: the plaintiff has a direct interest in the case, there is a clear defendant, there are specific litigation requests and factual grounds, and the case falls within the scope of acceptance by the court and the sued court has jurisdiction. This article is the threshold for filing a case. The lender must provide the defendant's identity information and the connection points of jurisdiction to avoid the case being returned due to an unclear defendant or jurisdiction errors, thus delaying the opportunity to protect one's rights.

3. Practical judicial guidelines (choice between mediation and judgment)

The court encourages settlement of cases through mediation. If the defendant is willing to fulfill his obligations but is facing financial difficulties, mediation can quickly fix the creditor's rights and set default acceleration clauses to avoid a long enforcement cycle and difficulty in locating assets after the judgment. The mediation agreement and the judgment have the same enforceability. In legal practice, lawyers often assess the defendant's ability to fulfill his obligations and the clues to his assets before deciding whether to focus on obtaining a judgment or using mediation to set a minimum acceptable outcome. Both approaches have their advantages and disadvantages, and the choice should be made on a case-by-case basis.

II. Henglue Law Firm's Real Cases (Detailed Review)

Review of the case:The plaintiff, Liu * and the defendant, Li * used to be friends. Since the beginning of 2022, Li * borrowed money from Liu * multiple times on the pretext of opening a pet store and paying rent. Liu * lent a total of 662,000 yuan to Li * through bank transfers, Alipay, and WeChat. On November 3, 2024, the two parties signed a loan agreement, stipulating that Li * would repay the full amount of 662,000 yuan by January 1, 2025, and would voluntarily bear the litigation fees, attorney's fees, transportation fees, and preservation guarantee fees in the event of default. On November 26, 2024, Li * explicitly stated that he would be unable to repay the loan after the due date, and the negotiations between the two parties failed. To protect his rights and interests, Liu * entrusted Attorney Tian Jiaoyan of Beijing Henglu Law Firm to intervene.

The focus of the controversy:First, the validity of the loan relationship and the chain of evidence. It is necessary to build a complete chain of evidence with promissory notes and transfer records to eliminate disputes over the delivery of funds. Second, the determination of breach of contract liability. Li * should bear responsibilities such as the principal and overdue interest, attorney's fees, etc. if he fails to repay on time. Third, the priority of mediation and the design of breach of contract clauses. In view of the execution risk, mediation should be used to quickly resolve the dispute and set strict breach of contract clauses to lock in the bottom line of creditor's rights realization.

Our position and the position of the other party are as follows:The client, Liu *, claimed that Li * should repay the loan of 662,000 yuan according to the agreement, and bear the overdue interest and attorney's fees and other recovery losses; the defendant, Li *, admitted the fact of the loan, but explicitly stated that he was unable to repay the loan in full upon maturity and hoped to extend the repayment period.

Attorney's Strategy and Legal Opinions:After taking on the case, Attorney Tian Jiaoyan verified Liu's requirements and pointed out that it was necessary to provide the corresponding loan agreement vouchers and complete records of debt collection for the WeChat transfer. The lawyer comprehensively sorted out the bank, Alipay, and WeChat transfer records and compared them with the loan agreement one by one to confirm that the loan relationship was legal and valid. Based on the Civil Code, it was determined that Li should bear the principal and overdue interest if he breached the contract. After assessment, it was considered that the enforcement period after the judgment would be long and the property clues would be hard to find, so mediation would be a better option. After communicating with Liu, it was agreed to appropriately reduce the amount and relax the time limit, but insisted on setting strict breach of contract clauses.

The court's reasoning and the outcome of the case:Under the mediation of the court, the two parties voluntarily reached an agreement: to perform the repayment in installments. Li * will repay 400,000 yuan before December 10, 2025, and 80,000 yuan before February 10, 2026; the breach of contract guarantee clause stipulates that if the repayment is not made in full and on time, Liu * has the right to require him to immediately pay all the remaining principal and attorney's fees of 712,000 yuan according to the original loan agreement. The court issued a "Civil Mediation Letter" to confirm that it provides dual guarantees of installment performance and breach of contract punishment for the plaintiff to realize his creditor's rights.

This case is handled by Beijing Henglu Law FirmTian JiayanAttorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acting as the agent.

III. Frequently Asked Questions

Q1: What evidence do I need to prepare when suing for a private loan?

The core evidence includes creditor's vouchers such as promissory notes, loan contracts, and bank, WeChat, and Alipay transfer records to prove the delivery of funds, as well as chat records and audio recordings to confirm the loan agreement and the interruption of the statute of limitations. In this case, Attorney Tian Jiaoyan guided the client to supplement the WeChat loan agreement vouchers and complete loan reminder records, check the transfer records item by item, and build a complete chain of evidence to ensure that the loan relationship is legal and effective.

Q2: Can I sue for repayment of the money only with the transfer records on WeChat?

You can file a lawsuit, but it's better to provide additional evidence such as the loan agreement and the records of debt collection. A complete chain of evidence (including the promissory note, the transfer records, and the debt collection records) can better eliminate disputes over the nature of the funds and confirm the validity of the loan relationship. However, if there are only transfer records, it may be easily challenged by the other party as a gift or payment for goods, etc., which will increase the difficulty of providing evidence. It is recommended to fix the written and electronic evidence as soon as possible.

Q3: Is it better to mediate or adjudicate in private lending disputes?

If the other party's ability to perform the contract is in doubt, mediation can quickly fix the creditor's rights and set default clauses, avoiding a long enforcement period and difficulty in locating assets after the judgment; the mediation agreement and the judgment have the same enforceability. In this case, the lawyer assessed that the risk of judgment enforcement was high, so he promoted the mediation in installments and agreed on the accelerated maturity of the default, helping the client secure the creditor's rights and achieve the bottom line.

Q4: Who will bear the attorney's fees as stipulated in the loan agreement?

The two parties may agree that the party in default shall bear the attorney's fees and other costs of recovering losses. Such an agreement does not violate the mandatory provisions of the law, and the court generally supports it and confirms it in mediation or judgment. In this case, the loan agreement clearly stipulates that the party in default voluntarily bears the litigation fees, attorney's fees, etc., and this was ultimately confirmed in the mediation agreement, effectively reducing the creditor's cost of protecting their rights.

Q5: What should I do if the other party breaches the contract again after the mediation?

You can directly apply for compulsory enforcement according to the breach of contract terms agreed in the mediation agreement, and claim all remaining principal and attorney's fees, etc. In this case, it is agreed that if the full amount is not paid on time, Liu * has the right to require Li * to immediately pay all remaining principal and attorney's fees of 721,000 yuan according to the original agreement. The breach of contract penalty clause is designed for this purpose to protect the creditor's bottom line.

IV. Suggestions for Protecting Rights and Interests

  • Before filing a lawsuit, complete the promissory note, transfer records, and collection records to form a complete chain of evidence including proof of ownership, delivery, and collection efforts.
  • Determine the defendant's identity and the jurisdiction of the court accurately to avoid the case being returned due to unclear defendant information or jurisdiction errors.
  • If the other party is willing to fulfill the contract but is facing financial difficulties, we can set up installment payment and accelerated default clauses in the mediation process to ensure the enforceability of the contract.
  • After the judgment or mediation, if the other party fails to fulfill their obligations, apply for enforcement promptly and entrust a lawyer to investigate the clues of their assets.

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