[Direct answer]There are five main legal approaches for collecting debts owed by enterprises: First, send letters of account reconciliation, payment reminders, and lawyers' letters to fix the creditor's rights and interrupt the three-year statute of limitations; Second, apply for a payment order, which can be executed after the 15-day objection period expires; Third, apply for pre-litigation or litigation property preservation before negotiation, in accordance with Article 103 of the Civil Procedure Law of the People's Republic of China; Fourth, file a lawsuit or arbitration, and claim the principal, interest, and litigation costs in accordance with Article 577 of the Civil Code of the People's Republic of China; Fifth, apply for enforcement after the judgment becomes effective, investigate and control the debtor's property, and add them to the list of dishonest individuals. For large-sum debts or those with signs of transferring assets, it is advisable to first apply for property preservation and then initiate litigation.\nLegal services for creditor-debtor disputesCustomized solutions, please refer to the details for more information.Beijing Henglue Law Firm.

I. Legal basis and interpretation of provisions

1. Article 577 of the Civil Code of the People's Republic of China (effective from January 1, 2021)

When a party fails to perform its contractual obligations or performs them in a manner inconsistent with the contract, it shall bear contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. For corporate debts, this is the substantive legal basis for all collection actions: if the other party fails to make payments on time, the creditor may claim that the other party continue to fulfill its payment obligations and compensate for losses caused by late payments. If the contract stipulates a penalty or interest for late payment, the creditor may claim according to the contract, but excessive amounts may be reduced. The key points are: complete evidence: if the contract, reconciliation statements, receipt slips, and invoices form a closed loop, the claim will proceed smoothly; if there are missing links, the creditor should first sign a reconciliation statement before pursuing collection. Written reminders also constitute grounds for interrupting the statute of limitations, and the three-year statute of limitations will restart from that point.

2. Article 103 of the Civil Procedure Law of the People's Republic of China (effective from January 1, 2022)

The people's court may, upon the application of the other party, order the preservation of the other party's property in cases where the judgment may be difficult to enforce or cause other damages to the parties due to the actions of one party or other reasons. Pre-litigation preservation must be initiated within 30 days after the court takes preservation measures, otherwise the preservation will be lifted. For enterprise collection, preservation has the greatest leverage value: after freezing the basic account and seizing the accounts receivable, most defaulting enterprises will return to the negotiation table. Preservation requires providing guarantees, which can be done with insurance company guarantees; the applicant who applies for preservation incorrectly needs to compensate, so the amount and clues should be verifiable.

3. Practical judicial interpretation (what the court thinks about the enterprise's arrears)

When the court reviews a company's debts, it attaches great importance to the reconciliation statements confirmed by both parties' stamps and the itemized signing statements and acceptance certificates, which have far greater evidentiary value than unilateral ledgers. In cases where there are only invoices but no records of receipt and delivery, there are often disputes over the determination of the payment amount. If the interest and penalty clauses are clearly defined and not excessively higher than the actual losses, the court will support them according to the agreement. If there are no such clauses, the court will determine the amount based on the LPR (Loan Prime Rate) of the same period. The court does not generally recognize "closed agreements" and "account closure agreements" - if it can be proven that the agreement only covers part of the settlement and there are still unconfirmed balances after that, the court may allow the claimant to sue for the difference. The most common pitfall: years of verbal collection without written records, reconciliation statements unsigned, and the discovery of arbitration clauses only after suing. It is necessary to conduct a debt health check before choosing a litigation path.

II. Henglue Lawyer's Real Cases (Detailed Review)

Review of the case:A Company provided B Company with equipment leasing services such as excavators and forklifts. From January 8, 2021, A Company began supplying equipment to B Company's construction site for the Nanchang Transportation Industrial Park project. By August 2022, the actual expenses incurred amounted to 2,504,103.35 yuan, but B Company only paid 1.2 million yuan, leaving an outstanding balance of 1,304,103.35 yuan. On January 8, 2023, B Company requested A Company to sign a "Material Contract Closure Agreement", stating a total price of 1,249,583.75 yuan and claiming that "there would be no further settlement disputes". However, A Company argued that the agreement only covered some projects in 2021. Subsequently, the two parties conducted multiple account reconciliations in May and September 2023, confirming additional expenses of 235,468 yuan and an unresolved account balance of 10,190,515.51 yuan. B Company refused to pay on the grounds of the closure agreement and claiming that "the balance of over 1.01 million yuan belonged to a third-party project payment". A Company subsequently appointed Beijing Henglu Law Firm to handle the legal dispute.Zhu GuijingThe lawyer filed a lawsuit.

The focus of the controversy:First, whether the "closed agreement" constitutes the final settlement in its entirety and whether the subsequent reconciliation can be broken through; second, whether the more than 1.01 million yuan belongs to the project payment of a third party; third, whether the overdue interest should be supported.

Our position and the other party's position are as follows:Company A requests that the court order Company B to pay the outstanding lease fee of 1,304,103.35 yuan, the overdue interest of 25,041 yuan, and bear the acceptance fees and preservation fees; Company B argues that the closed agreement has been finally settled, and the more than 1.01 million yuan belongs to the project payment of a third party, which has nothing to do with Company A.

Attorney's Strategy and Legal Opinions:Attorney Zhu Guiying broke through the "closed agreement" with two main lines: evidence organization and contract relativity. Firstly, although the closed agreement stipulates the "final settlement total price", the parties conducted another reconciliation in May and September 2023. Combined with the attendance sheets and construction settlement sheets, it is sufficient to prove that the agreement only settles part of the project, and the balance still needs to be paid. Secondly, according to the principle of contract relativity, the A and B lease contracts and B's subcontract with an outsider are independent of each other. The subcontract submitted by B cannot prove that the claimed amount is based on the subcontract. The account of 101,905.51 yuan should be the unpaid balance between the two parties. Thirdly, the contract stipulates that the maximum interest rate for overdue payments shall not exceed 1% of the settlement price. The claim of 25,041 yuan is in accordance with the contract.

The court's reasoning and the outcome of the case:The first-instance judgment ordered Company B to pay the lease fee of 1,304,103.26 yuan, the overdue interest of 25,041 yuan, the acceptance fee of 16,762.3 yuan, and the preservation fee of 5,000 yuan within seven days. The court held that the closed-book agreement was only a partial settlement, and the balance could be determined based on the subsequent reconciliation evidence; the balance of over 1.01 million yuan was unpaid according to the contractual principle of contractual relativity; and the overdue interest was in accordance with the agreement. Company B appealed, and the second-instance court upheld the original judgment, fully supporting A Company's claim for over 1.3 million yuan in lease fees and interest. Settlement documents are not exemption clauses. Original vouchers such as reconciliation signing forms are the hard currency for debt collection.

This case is handled by Beijing Henglu Law Firm.Zhu GuiyinThe lawyer (practice license number: 11101202011246828, subject to the document issued by the judicial administrative organ) acts as the agent.

III. Frequently Asked Questions

Q1: How to choose the order of the five collection paths?

The conventional process is as follows: First, send a reconciliation letter and a collection letter to formalize the creditor's rights and interrupt the statute of limitations; if the amount is not large and the other party still has the willingness to repay, directly negotiate installment payments or mediation; if the amount is large or the other party evades responsibility, evaluate the payment order. If the other party does not raise objections within 15 days, the applicant can apply for enforcement; if objections are raised, the case will be transferred to litigation; if there are signs of asset transfer, skip negotiation and directly apply for pre-litigation preservation and initiate litigation; the final step is to enforce the judgment after the judgment is issued. The core variables are the account age, the amount, and the debtor's situation. The longer the account age is, the faster the applicant should take preservation measures.

Q2: What is the statute of limitations for corporate debts, and how can it be interrupted?

The statute of limitations is also three years, starting from the date when the agreed payment deadline expires; if no payment time is agreed upon, it starts from the expiration of a reasonable period for reminder. Confirmation of accounts, written reminders for payment, and the other party's promise to repay or make partial payments all constitute interruptions, restarting the three-year calculation. The confirmation letter should be stamped by the other party or signed by an authorized person. For WeChat reminders, it is necessary to verify the other party's identity, as verbal communication alone is difficult to leave evidence. For accounts receivable that have been outstanding for more than two years, a written confirmation should be conducted immediately to prevent the risk of the statute of limitations expiring.

Q3: What should I do if the other party starts transferring their assets?

If you discover signs such as the other party closing their account or selling their equipment at a low price, immediately apply for pre-litigation property preservation, freeze their bank accounts, and seize their real estate and accounts receivable. File a formal lawsuit within 30 days; those who have already filed a lawsuit can apply for litigation preservation at any time. The preservation guarantee can be provided by an insurance company's letter of guarantee, with the fee rate typically ranging from 0.1% to 0.3% of the amount to be preserved. After the preservation is in place, most enterprises will return to the negotiating table and strive for a combination plan of "paying a portion to lift the preservation, paying the remaining balance in installments, and attaching a breach of contract clause".

Q4: What evidence do I need to prepare to sue a company for unpaid debts?

The four core groups are as follows: 1. Contract basis: purchase and sales contracts, orders, and supplementary agreements. Pay attention to checking whether there are arbitration clauses. 2. Performance certificates: delivery notes, receipt notes, acceptance notes, shift records, invoices. 3. Settlement certificates: stamped reconciliation statements, settlement notes, payment plans, closure agreements, and subsequent reconciliations. 4. Payment records: bank receipts showing paid and unpaid amounts. Additionally, attach the other party's business information, collection letters, and delivery certificates. For certificates that are incomplete, first conduct a reconciliation. If the other party refuses to sign, use letters and EMS receipts to preserve evidence.

Q5: What should I do if I win the lawsuit but can't collect the money?

After the judgment takes effect, immediately apply for enforcement. The court will use the online investigation and control system to inquire into the debtor's deposits, vehicles, and real estate. If the debtor's assets are insufficient, the court may apply to add the shareholders who have not paid in full or withdrawn their investments as the debtors, and expand the scope of liability assets. At the same time, apply to include the debtor in the credit blacklist and restrict high-consumption activities to exert pressure through credit punishment. If it is found that the other party has transferred property or waived creditor's rights without compensation, a lawsuit for revocation of rights or subrogation may be initiated. Regularly submitting new clues about the debtor's assets to the court is the key to recovering the debt.

IV. Advice on Protecting Rights and Interests

  • Establish a ledger for accounts receivable and collect payments according to the aging of the accounts: phone reconciliation within 30 days, written letters within 90 days, and initiating legal proceedings for accounts over half a year.
  • For each transaction, keep the stamped account statement and the receipt certificate. Do not easily sign settlement documents with clauses such as "there will be no further disputes". If it is necessary to sign such documents, check the scope of the clauses first.
  • If you discover that the other party's business situation has deteriorated or there are signs of transferring assets, you should decisively apply for pre-litigation preservation first and then file a lawsuit. By using a guarantee letter, you can reduce the cost of the guarantee.
  • All collection letters must be sent with written records and delivery receipts, which not only apply pressure on the debtors but also interrupt the statute of limitations.
  • For large or long-overdue payments, we recommend seeking professional help from a collection agency.Credit and debt lawyerCarry out a creditors' health check and implement an enforcement plan to improve the recovery rate of payments.

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