[Direct answer]It must be repaid. Criminal liability and civil liability are independent of each other. According to Article 187 of the Civil Code of the People's Republic of China (effective January 1, 2021), if a civil subject should bear administrative or criminal liability for the same act, it shall not affect the obligation to bear civil liability. If the debtor's property is insufficient to pay off the debt, it shall be used to bear civil liability first. The debtor's imprisonment does not affect the existence of the creditor's rights, and the creditor may directly file a lawsuit against the debtor. According to Article 23 of the Civil Procedure Law of the People's Republic of China (amended in 2021), a lawsuit against a person who has been imprisoned shall be under the jurisdiction of the people's court of the defendant's domicile. It should be noted that imprisonment is generally not a statutory ground for suspending the limitation period. The three-year limitation period is still in effect, so it is not advisable to put off claiming rights just because the other party is in prison.

I. Problem Background and Typical Scenarios

A common scenario is that the lender suddenly finds that the borrower has been detained or sentenced for a criminal offense, and the borrower's phone cannot be reached or the borrower cannot be found at home. As a result, two misunderstandings arise: one is that "since the person is in prison, the money can only be written off as a loss"; the other is that the borrower says "since I've already been sentenced, I don't need to repay the debt". In practice, such debts are often intertwined with cases such as fraud, embezzlement, and illegal absorption of public deposits. The same sum of money may involve both criminal restitution and civil loans. It is necessary to clarify the relationship first and then determine the approach, which is also the case with other similar situations.Debt recoveryHere are some common cross-cutting issues in the field of artificial intelligence.

II. Key points of contention

First, the jurisdiction of the court. If the defendant is imprisoned, the court in the plaintiff's domicile or habitual residence shall have jurisdiction. This convenient rule avoids the creditor having to file a lawsuit in the location of the prison. Second, whether the statute of limitations is suspended. The suspension of the statute of limitations requires legal obstacles such as force majeure and the debtor being controlled, but the debtor's serving a prison sentence itself does not generally constitute a reason for suspension, and it may only affect the service of process and court arrangements. Third, the relationship between criminal and civil cases. For cases involving multiple parties based on the same facts, compensation is generally obtained through criminal restitution procedures; for independent civil loan relationships, civil litigation can be initiated in parallel. Fourth, the scope of enforcement of property. The deposits, real estate, vehicles, equity, and external creditor's rights of the serving prisoners can all become objects of enforcement, and the reduction of sentence and parole do not affect the enforcement process. Fifth, the succession of debts. If the debtor dies, the heirs shall pay off the debts within the actual value of the inherited estate in accordance with Article 1161 of the Civil Code of the People's Republic of China; if it is a joint debt of the couple, the spouse shall still repay the debt together.

III. Professional analysis by Henglue Lawyers

The practical approach of Henglue Law Firm in handling such cases is to first determine the nature of the case and then determine the actions involved. Firstly, we need to determine the relationship between criminal and civil litigation: if the funds have been identified as criminal proceeds, they should be declared to the case-handling authority and followed up on the distribution of the compensation in a timely manner. Otherwise, the separate prosecution may be rejected. If the loan relationship is independent and clear, it is more efficient to directly initiate civil litigation, which can be combined with other legal procedures.Criminal defense1. Coordinate the compensation and refund arrangements in the program. 2. Resolve procedural obstacles: If the defendant is in a detention center, the court can hold hearings in the detention center, conduct remote video hearings, or proceed with a default trial according to law. The trial will not be suspended due to the defendant being in custody, but the service process usually requires the assistance of the detention center, which may prolong the timeframe. 3. Prioritize property preservation: Apply for litigation preservation simultaneously with the lawsuit, and inquire into the defendant's real estate, vehicles, bank accounts, and due claims. The enforcement of fines and confiscated property does not affect the repayment of legitimate debts. According to Article 60 of the Criminal Law of the People's Republic of China (effective October 1, 1997), if the defendant owes legitimate debts before the confiscation of property, and the debts need to be repaid with the confiscated property, the creditor may request repayment. 4. Enforce the judgment: Apply for enforcement after the judgment takes effect. Property investigation will continue after the defendant is released from prison, and new assets discovered may trigger a resumption of enforcement. For cases involving family property division, reference can be made to relevant provisions.Marriage and family affairsAndInheritance of propertyThe processing rules determine the scope of liable property.

IV. Practical suggestions and legal basis

In terms of legal basis, Article 187 of the Civil Code of the People's Republic of China (effective January 1, 2021) establishes the priority of civil liability. Article 23 of the Civil Procedure Law of the People's Republic of China (amended in 2021) defines the jurisdiction rules for imprisoned persons, and Article 246 stipulates that the period for applying for enforcement is two years. Article 60 of the Criminal Law of the People's Republic of China (effective October 1, 1997) stipulates the order of repayment of legitimate debts. The above provisions shall be applied in accordance with the currently effective laws, regulations, and judicial rulings. It is recommended to proceed in four steps: First, check whether the three-year statute of limitations is about to expire, and sue as soon as possible while applying for preservation simultaneously; Second, organize basic evidence such as IOUs, transfer records, and collection records. For criminal cases, supplementary materials such as criminal judgments and refund progress materials should be provided; Third, submit information on the defendant's detention location to the court and cooperate with the delivery and court arrangement; Fourth, apply for enforcement after the judgment takes effect, and simultaneously investigate their external creditor's rights, provident funds, equity and other property rights. For disputes over the validity of contracts and the nature of payments, relevant evidence should be provided in conjunction with the case materials.Contracts and commercial disputesOrganize the materials according to the rules of evidence.

5. Henglue Law Firm's Reminder

There are three pitfalls that are most easily encountered: First, waiting until the other party is released from prison to assert claims, only to find that it is impossible to win the lawsuit after the statute of limitations expires; Second, making duplicate claims for criminal restitution and civil creditor's rights, resulting in a procedural stalemate; Third, ignoring the responsibilities of spouses and heirs and only focusing on the imprisoned person himself while giving up on enforceable assets. It should be noted that if the debtor's family voluntarily pays off the debt on behalf of the debtor, it does not constitute a change in the nature of the debt, and it can be accepted and a written agreement can be signed; if the creditor is pressured to waive interest on the condition of reduced sentence or parole, it should be treated with caution. If the debtor really has no assets, the creditor can apply to terminate the current enforcement and retain the right to resume enforcement in the enforcement stage.Beijing Henglue Law FirmSuggestion: Regardless of the other party's situation, first address the two matters of statute of limitations and property clues.

VI. Frequently Asked Questions

Q1: Can a creditor win a lawsuit against a debtor who is serving a prison sentence?

If the creditor's claim is genuine, the evidence is complete, and the statute of limitations has not expired, the civil judgment will usually support the claim; if the funds have been identified as criminal proceeds, the claim must be made through the criminal restitution procedure, and a separate lawsuit may not be accepted or dismissed.

Q2: What evidence do I need to prepare?

The promissory note or loan contract, transfer and cash withdrawal receipts, chat records of debt collection, the other party's detention information, criminal judgments and restitution materials, as well as property clues such as real estate, vehicles, and accounts under their name.

Q3: How much does it cost to handle cases like this?

The litigation fees are charged in stages according to the amount of the dispute, and the application execution fees are collected by the court from the person subject to enforcement. The defendant may incur additional costs such as public notices and travel expenses in the detention facility, and the attorney's fees shall be subject to the provisions of the entrustment contract.

Q4: How long does the process take?

Due to the need for the prison to cooperate with the delivery and court hearings, the first-instance trial usually takes about six months. The announcement of the delivery or the objection to jurisdiction will further prolong the process. After the judgment, the actual collection of the money will depend on the status of the property.

Q5: What should I do first?

First, calculate the statute of limitations and organize the promissory notes and transfer evidence to confirm whether the case falls under civil lending or criminal restitution. Then, file a lawsuit with the court in the defendant's domicile and apply for property preservation simultaneously.

The above Q&A is mainly based on judicial practices in the Beijing area. There may be differences in the interpretation of the law 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, so as to avoid missing the statutory time limit. →\nLegal services for creditor-debtor disputes·Beijing Henglue 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. If you encounter disputes, please consult a practicing lawyer in time.