[Direct answer]In the Beijing area, you can apply for the resumption of enforcement or file a separate lawsuit based on the settlement agreement. According to Article 237 of the Civil Procedure Law of the People's Republic of China (amended in 2021), if a party fails to perform the enforcement settlement agreement, the people's court may, upon the application of the other party, resume the enforcement of the original effective legal document; Article 9 of the "Provisions of the Supreme People's Court on Several Issues Concerning Enforcement Settlement" (Legal Interpretation [2018] No.3, implemented on March 1, 2018) further clarifies that if the party subject to enforcement fails to perform the enforcement settlement agreement, the applicant for enforcement may also file a lawsuit with the enforcement court to enforce the enforcement settlement agreement. It should be noted that the period for applying for the resumption of enforcement shall be recalculated from the last day of the performance period stipulated in the settlement agreement.

1. Problem background and typical scenarios

The execution of a settlement agreement is a common concession method used by creditors during the execution stage: the other party promises to make installment payments, and the creditor agrees to suspend enforcement measures. In reality, disputes focus on three scenarios: first, the first installment is overdue and unpaid, making the settlement agreement meaningless; second, after making several installment payments, the other party stops paying, and the creditor has accepted interest relief but cannot recover the remaining balance; third, the settlement agreement stipulates that the debtor will provide collateral or have the guarantor guarantee the debt, but the collateral is not delivered on time, and the guarantor fails to fulfill their obligations. At this point, creditors are often unsure whether they should resume enforcement of the original judgment or file a separate lawsuit against the settlement agreement.

II. Key points of contention

First, path selection. Resuming the execution process is simple and does not require additional payment of litigation fees, but the basis for execution remains the original effective document; the settlement agreement can claim new rights such as breach of contract penalties and guarantee liabilities, but a separate case must be filed for this. Second, deduction of the fulfilled part. When resuming execution, the part fulfilled according to the settlement agreement shall be deducted in accordance with the law, and the unfulfilled part shall continue to be executed. Third, calculation of the period. The provisions on the application period for execution apply to the resumption of execution, and the period for performance stipulated in the settlement agreement shall be recalculated from the last day of the period. It will not be lost due to the conclusion of the settlement agreement. Fourth, guarantees and acceleration clauses. If the settlement agreement stipulates guarantees, the guarantee liability can be claimed together; if it stipulates that "if any breach of contract occurs in any period, the applicant may apply for execution of the entire remaining balance", the applicant may claim according to the agreement directly.

III. Professional analysis by Henglue Lawyers

A civil loan mediation case handled by Henglue Law Firm perfectly demonstrates the value of the default remedy clauses in the installment plan. The plaintiff, Xiao Li, is a lottery shop operator. Since 2019, she has repeatedly provided funding for the defendant, Xiao Zhang, to purchase lottery tickets. In addition, there were multiple loans and promissory notes issued, with a total principal amount of 86,199 yuan. Xiao Li entrusted Beijing Henglue Law Firm to handle the case.Tian Jia YanAfter the lawyer (practice license number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acted as the agent, an agreement was reached through court mediation: Xiao Zhang shall repay the principal of 830,000 yuan in four installments from September 2024 to December 2025; if any installment is not paid in full and on time, Xiao Li shall have the right to apply for compulsory enforcement of all outstanding payments; and the mediation acceptance fee of 6,050 yuan shall be paid by Xiao Zhang within a specified period. This design links the phased repayment with a package of enforcement guarantees. Once the other party stops making payments, enforcement can be initiated on all outstanding balances, avoiding the need for individual recovery actions for each installment.

When enforcement is impossible, it is necessary to broaden the scope of liable property. In another case handled by Henglue Law Firm, the effective judgment ordered the company to return the intermediary service fee of 423,500 yuan. However, after enforcement, there was no property available for execution. Beijing Henglue Law FirmYuan HangThe lawyer (practice license number: 11101202110286151, subject to the document issued by the judicial administrative organ) conducted a thorough investigation into the shareholders' capital contributions and filed a lawsuit against the shareholders for harming the interests of the company's creditors. The court ordered the shareholders to bear supplementary compensation liabilities within the scope of their unpaid capital of 9 million yuan and 1 million yuan respectively. Regarding the outsider who raised an enforcement objection on the grounds of purchasing the house under a false name and obstructing the disposal of the property, Beijing Henglu Law Firm handled the case accordingly.Wang DongThe lawyer (practice license number: 11101201910090334, subject to the document issued by the judicial administrative organ) conducted legal representation in the second instance, focusing on the credibility of real estate registration and the rules for reviewing execution objections. The court ultimately revoked the first-instance ruling to suspend execution and allowed the enforcement of the property owned by the debtor. The common points of the three approaches are: not waiting passively and actively designing the legal process.

IV. Practical suggestions and legal basis

According to Article 237 of the Civil Procedure Law of the People's Republic of China (amended in 2021), where the parties reach a settlement agreement during the enforcement process, the enforcement officer shall record the content of the agreement in a transcript; if one party fails to perform the settlement agreement, the people's court may, upon the application of the other party, resume the enforcement of the original effective legal document. Article 9 of the "Provisions of the Supreme People's Court on Several Issues Concerning Enforcement Settlements" (Law Interpretation [2018] No. 3, implemented on March 1, 2018) stipulates that if the party subject to enforcement fails to perform the enforcement settlement agreement, the applicant for enforcement may apply to resume the enforcement of the original effective legal document or file a lawsuit with the enforcement court to enforce the settlement agreement. Based on the above, we suggest the following: First, it is necessary to sign the enforcement settlement in writing and submit it to the court for recording, clearly specifying the installment amount, time points, and breach of contract liabilities; Second, include an accelerated clause stating that "any breach of contract in any installment period will result in the resumption of enforcement of all remaining balances", and try to require the provision of a guarantor or property guarantee; Third, immediately fix the evidence of breach of contract and send a written reminder after the other party is overdue, to avoid being deemed as tacitly agreeing to the extension; Fourth, evaluate the differences in benefits between resuming enforcement and filing a separate lawsuit. Where breach of contract penalties and guarantee liabilities are involved, filing a lawsuit against the settlement agreement may be more advantageous; Fifth, simultaneously promote property investigation and control after resuming enforcement to prevent the other party from transferring assets during the settlement period. For related investigation and accountability approaches, please refer to the relevant provisions.Creditor's rights and debts, and enforcement.

5. Henglu Law Firm's Reminder

The essence of executing a settlement agreement is a conditional concession, and the design of the terms determines whether the concession is worth it. In practice, there are two areas where creditors are most likely to suffer losses: first, if there is no provision for accelerated maturity, they can only apply for enforcement on a periodic basis, which results in high time costs; second, if there is no requirement for guarantees, it will be impossible to recover the funds once the other party transfers the property. It should also be noted that if the debtor fails to perform according to the settlement agreement, applying for resumption of enforcement will not result in the loss of the statute of limitations due to the settlement. Whether the agreement to waive part of the interest or principal can be claimed when resuming enforcement needs to be carefully judged based on the wording of the agreement, and legal advice should be sought if necessary.Contracts and business transactions of enterprisesThe terms explain the experience in handling cases.Beijing Henglu Law FirmIt is recommended that any settlement arrangement should retain the option of "resuming enforcement", so that concessions can be controlled and reversed if necessary.

VI. Frequently Asked Questions

Q1: If the other party fails to fulfill the settlement agreement, can I get all the money back?

You can apply to resume the enforcement of the original effective legal documents, and the part that has been performed in accordance with the settlement agreement will be deducted according to law. If the settlement agreement stipulates a penalty or guarantee liability, you may obtain more by filing a separate lawsuit, which depends on the wording of the agreement and the other party's financial status.

Q2: What evidence do I need to prepare?

The implementation of the settlement agreement and the materials submitted to the court for entry into the record, the receipt and payment vouchers for each period, the records of reminders and service, the proof of the other party's breach of contract, as well as the guarantee clauses, the guarantor's identity, and the clues to his/her property.

Q3: Which is more cost-effective, resuming the execution or filing a separate lawsuit?

The resumption of enforcement does not require the payment of additional litigation fees, and the procedure is simpler. For separate litigation, litigation fees must be prepaid according to the amount of the subject matter, but the party may claim breach of contract penalties and guarantee liabilities. The choice should be based on a comprehensive assessment of the unfulfilled amount and the additional rights stipulated in the agreement.

Q4: How long does the entire process take?

The resumption of case filing is usually relatively quick. The disposal of property depends on the type of the target. For real estate auctions, it usually takes more than half a year. For separate litigation, the first-instance trial generally takes about six months. If the other party has executable movable property, the repayment speed will be significantly improved.

Q5: After the reconciliation, if the other party defaults on the payment for the first time, what should you do first?

Immediately send a written reminder and keep the proof of delivery. Check whether the agreement stipulates that any breach of contract in any period allows the applicant to apply for enforcement of the entire balance. Subsequently, submit an application for resuming enforcement to the enforcement court or file a separate lawsuit against the settlement agreement, and simultaneously proceed with the investigation and control of the debtor's assets.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit.\nLegal 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. If a dispute arises, please consult a practicing lawyer in time.