[Direct answer]Yes. Legal advisors can handle the entire process of collecting corporate accounts receivable: first, sort out the aging of accounts and check the reconciliation vouchers, then send collection letters or lawyer's letters to apply pressure; if no agreement can be reached, they can apply for payment orders, initiate lawsuits or arbitrations, and simultaneously apply for property preservation. After winning the case, they can apply for forced execution. According to Article 188 of the Civil Code (effective January 1, 2021), the statute of limitations for claiming civil rights is three years, starting from the date when the payment deadline expires; Article 579 stipulates that if the other party fails to pay the price, the creditor may request it to pay. It is recommended that enterprises handle overdue accounts in stages, keep records of collection efforts as soon as overdue accounts arise, and avoid the statute of limitations expiring and evidence being lost. They can first try to resolve the issue through negotiation.Intellectual property protection and corporate legal servicesOrBeijing Henglu Law FirmEvaluate the plan.

I. Problem background and typical scenarios

Credit sales and payment terms are the norm for small and medium-sized enterprises. As a result, accounts receivable being overdue has become one of the most common issues for which companies seek legal advice. Typical scenarios include: the expiration of the payment period stipulated in the contract, with the other party repeatedly delaying payment on the grounds of financial difficulties; the replacement or even loss of contact with the responsible person, leaving no one to confirm the payment; the other party refusing to pay on the grounds of quality objections, but failing to provide evidence of objections raised during the acceptance period; accounts receivable being overdue for several years, with accounting statements and receipt documents long lost; and the other party's deteriorating business situation or even entering the liquidation process, meaning that failure to take action now will result in irreversible losses. Most payment delays can actually be resolved at the non-litigation stage, the key being timely initiation, sufficient evidence, and compliance with legal procedures.

II. Key points of contention

  • The statute of limitations and the evidence of collection: The three-year statute of limitations starts from the expiration of the performance period. It's hard to provide evidence only through verbal collection on WeChat. Collection without leaving traces is equivalent to not having collected at all in litigation, and the statute of limitations benefits may be lost in vain.
  • The integrity of the evidence chain: contract orders, delivery receipts, acceptance records, reconciliation statements, invoices, and collection letters. If any link is missing, the other party may raise objections about the amount or quality of the goods, and it's often difficult to provide additional evidence afterwards.
  • Disposal path and cost trade-off: Payment orders are quick but require clear and undisputed creditor's rights; litigation and arbitration take a long time but can ensure enforcement. It is necessary to combine the other party's repayment ability and account aging to formulate strategies, which can be referred to for reference.Legal services for creditor-debtor disputes and enforcement casesThe approach to dealing with it.

III. The practical experience of Henglue Law Firm

The routine practice of Henglue Lawyers in assisting enterprises in handling accounts receivable involves four steps. The first step is to inventory the age of the accounts and the evidence: sort them by the number of days overdue (such as 30 days, 90 days, and more than 180 days), and check the contracts, receipts, account reconciliations, and payment vouchers one by one to complete the account reconciliation first. The second step is non-litigious collection: send a lawyer's letter stating the amount of the debt, the contract basis, the payment deadline, and the consequences of overdue payment, formally request performance and interrupt the statute of limitations. A significant proportion of accounts are recovered or a repayment plan is facilitated at this stage. The third step is to accelerate the procedure: for accounts with clear creditor amounts and no substantive disputes from the other party, apply for a payment order according to the Civil Procedure Law. If the other party does not raise objections within the statutory time limit, enforcement can be applied for. If there are signs of property transfer, sue and apply for preservation and freezing of the account at the same time. The fourth step is integrated litigation and enforcement: immediately apply for enforcement after the judgment takes effect, check and transfer the property through online means, and apply to list the defaulting party on the credit blacklist. If there are loopholes in the contract terms or issues with the qualifications of the transaction counterparties, consult with the client to determine the next steps.Business and contract dispute resolution services for enterprisesThe team conducts a collaborative review and debriefing session.

IV. Practical suggestions and legal basis

Legal basis: Article 188 of the Civil Code (effective January 1, 2021) stipulates the three-year statute of limitations and the rules for calculating the start date; Article 195 stipulates that the statute of limitations is interrupted when the right holder submits a request for performance to the obligee, and the statute of limitations is recalculated from the date of interruption; Article 509 requires the parties to fully perform their obligations according to the agreement; Article 577 stipulates that the breaching party shall bear contractual liabilities such as continuing to perform the contract and compensating for losses; Article 579 stipulates that if one party fails to pay the price, the other party may request it to pay; Article 626 clearly stipulates that the buyer shall pay the price according to the agreement. The urging procedure and property preservation system of the Civil Procedure Law provide procedural tools for quick recovery of funds. Practical suggestions: When signing a contract, specify the payment period, overdue interest, and delivery address clauses; establish a monthly account reconciliation system and require the other party to stamp and confirm it; send a letter to collect the debt within 30 days after the overdue date, and evaluate a payment order or sue within 90 days; all collection actions should be carried out through traceable channels.

5. Henglue Law Firm's Reminder

The key words of accounts receivable management are "early" and "traceable": early collection, early reconciliation, and early decision on whether to sue, with written records kept at every step. A lawyer's letter is not about confrontation, but a low-cost means of formalizing repayment obligations and fixing the statute of limitations evidence. If you wait until the other party's business collapses or the statute of limitations expires, even the strongest claims will just remain on paper. If you have a large number of accounts receivable that need to be handled or want to establish a risk control system for accounts receivable, you can contact us for assistance.Beijing Henglu Law FirmMake an appointment with a consultant for an assessment and develop a tiered collection plan based on the age of the accounts.

Q1: How long will it take for accounts receivable to exceed the statute of limitations for litigation?

According to Article 188 of the Civil Code, the statute of limitations for litigation is three years, generally starting from the date of expiration of the payment period agreed in the contract; if there is no agreed payment period, it starts from the date of confirmation of the creditor's rights by both parties or the expiration of the grace period. Sending a reminder letter, confirming the account balance, and receiving partial repayment from the other party can interrupt the statute of limitations according to Article 195, and the three-year period will start anew after the interruption. Even if the statute of limitations has passed, you can still sue, but once the other party raises the statute of limitations defense, you will lose the right to win the case. Never handle overdue accounts with the mindset of "waiting for the other party to pay back". Every time you collect the debt, you should leave written evidence that can be used as proof.

Q2: Is it really effective to send a lawyer's letter to demand payment?

It's useful and cost-effective. The function of a lawyer's letter is threefold: first, to formally request performance, interrupt the statute of limitations, and fix the evidence of collection; second, to exert compliance pressure on the other party. The letter specifies the amount of the debt, the contractual basis, and the consequences of overdue payments. A significant proportion of accounts receivable are collected or a repayment plan is facilitated at this stage; third, to pave the way for subsequent preservation and litigation. The letter should be sent by EMS and the receipt and the letter should be kept. If the letter fails to collect the debt, it should be promptly transferred to the payment order or litigation process to avoid delaying the matter by treating the lawyer's letter as the only means of action.

Q3: What evidence do I need to prepare to sue for the recovery of the payment?

Five types of materials constitute the basic chain of evidence: first, contracts or orders, which prove the transaction relationship and the price; second, performance certificates, such as delivery notes, receipt records, and acceptance reports; third, account statements, invoices, and payment records, which prove the outstanding balance; fourth, collection records, such as letters, WeChat messages, and emails, which prove the continuous assertion of rights; fifth, the other party's basic information. At the same time, prepare a calculation breakdown of the principal and interest of the debt. If there are no receipt certificates, the account statement stamped by the other party can be used to supplement the evidence; if the evidence is insufficient, it is better to supplement the account statement first and then sue, which will increase the chances of recovering the debt.

Q4: Can I apply to the court to freeze the other party's account?

Yes. When suing or before the judgment, you can apply for litigation preservation in accordance with the Civil Procedure Law; if the situation is urgent and failure to immediately preserve the evidence will cause irreparable losses, you can apply for pre-litigation preservation before suing, but you need to provide a guarantee and sue within 30 days after the court takes preservation measures. Otherwise, the preservation will be lifted. Freezing accounts and seizing real estate and vehicles can often directly lead to settlements and recoveries. It should be noted that the scope of preservation is limited to the amount requested, and you need to bear compensation liability if the application results in losses to the other party. The property clues should be as accurate as possible, and it is advisable to operate after the lawyer assesses the timing.

Q5: What should I do if the other party still refuses to pay after I win the lawsuit?

After the expiration of the performance period, an application for enforcement may be submitted to the court. The period for applying for enforcement is two years. The court may freeze and transfer the other party's bank deposits, seize and auction property and vehicles through the online investigation and control system; those who refuse to perform their obligations may be included in the list of dishonest people, subject to restrictions on high-consumption, and those who commit serious circumstances may be held criminally responsible for refusing to perform their obligations. If any clues to the other party's property are found during the enforcement, they should be provided to the court in a timely manner; if there is no property available for enforcement, the application for terminating the current procedure may be submitted, and the enforcement may be resumed after the property is found. For enterprises that have difficulties in recovering the repayment of debts, they may simultaneously investigate clues to the other party's transfer of property and recover the debts in accordance with the law.

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. →Intellectual property protection legal services·Beijing Henglu Law Firm