[Direct answer]Yes. During the execution process, both parties can reach a settlement at any time to agree on the repayment amount, installment period, and performance method. According to the "Provisions of the Supreme People's Court on Several Issues Concerning Execution Settlements" (effective from March 1, 2018, and amended on December 29, 2020): If one party fails to perform the settlement agreement, the other party may apply for resuming the execution of the original effective legal document, or file a lawsuit with the court to enforce the settlement agreement, but only one of the two options is allowed; if the settlement agreement has been fully performed, the execution will not be resumed; the application for resuming the execution shall apply the provisions of the two-year enforcement period, which shall be calculated from the last day of the performance period agreed upon in the settlement agreement. Settlement is a tool rather than the end goal: before signing the agreement, it is necessary to verify the other party's performance ability and financial status, specify the installment amount and the consequences of default, and try to require guarantees to prevent simple delaying tactics. For more details, please refer to the following link:Creditor-debtor relations and enforcement case services.

I. Problem Background and Typical Scenarios

After the judgment comes into effect and enters the enforcement stage, many of the defendants actively seek reconciliation: they propose installment payments, offer properties as debt repayment, request interest reductions or waivers, and ask to lift the control and seizure measures to gain a breathing space. Meanwhile, the applicants worry that "if they sign an agreement, the defendant will transfer assets" or "if the last installment is not paid, they will have to start over again". In some cases, after the enforcement is terminated, the other party suddenly appears to seek reconciliation. Reconciliation is a dispute resolution method allowed and encouraged by law, but the key lies in designing the agreement into an enforceable arrangement with remedies for breach of contract. If the other party has no assets available for enforcement before signing the agreement, even the most well-designed agreement may fail. It is necessary to simultaneously evaluate other accountability paths. For cases involving contractual debts, a background review can be referenced.Business and contract dispute services for enterprises.

II. Key points of contention

First, the choice of relief path: When the other party fails to perform, only one of the two options can be chosen between resuming the enforcement of the original effective legal document and suing to require the performance of the settlement agreement. Choosing the wrong one will lead to a procedural deadlock. Resuming the enforcement is more straightforward in most cases, but the interest and guarantee content added to the settlement agreement need to be claimed separately. Second, the deduction of partial performance: When applying to resume the enforcement, the part of the obligation that the other party has already performed according to the agreement should be deducted to prevent double compensation. Third, the protection of property during the settlement period: After reaching a settlement, the enforcement may be suspended. If the debtor takes the opportunity to transfer property during this period, the right to revoke the disposition of the transferred property or to add relevant parties as defendants can still be exercised after resuming the enforcement. Fourth, the effectiveness of guarantee clauses: If the settlement agreement stipulates that a third party provides a guarantee or that specific property is guaranteed, the creditor can claim against the guarantor according to law when the other party fails to perform. When signing the agreement, the guarantee should be formalized in writing and the scope of liability should be clearly defined.

III. Professional analysis by Henglue Law Firm

The premise of reconciliation is that the other party "has the ability to perform"; when there are no assets to be found, it's better to change the path of accountability than to repeatedly sign reconciliation agreements. Our firm once handled a typical case: Ma * and A Company's intermediary contract dispute. The Chaoyang District Court of Beijing ruled that A Company should return the intermediary service fee of 423,500 yuan. During the execution, the court ruled to terminate the execution procedure because A Company had no assets to be executed. Ma * entrusted Beijing Henglu Law Firm to handle the case.Yuan HangAfter the lawyer (practice license number: 11101202110286151, subject to the document issued by the judicial administrative organ) took over the case, the lawyer investigated the industrial and commercial archives and found that shareholder Liu * subscribed to 9 million yuan and shareholder Zhang * subscribed to 1 million yuan, with the subscription period ending on September 23, 2039. There were no records of actual payment. Therefore, the lawyer filed a lawsuit against the shareholders for their failure to fulfill their obligations and causing harm to the company's creditors. The defendant shareholders claimed to enjoy the benefits of the subscription period and failed to appear in court to defend themselves or provide evidence of actual payment. The court determined that A Company had exhausted all means of enforcement and possessed the grounds for bankruptcy but failed to apply for bankruptcy. Therefore, the shareholders' subscribed capital legally matured. The court ruled that Liu * should bear supplementary compensation liability for the company's inability to pay off debts within the scope of his unpaid 9 million yuan, and Zhang * should bear supplementary compensation liability for the company's inability to pay off debts within the scope of his unpaid 1 million yuan. This case shows that when enforcement is blocked, additional measures such as suing unpaid shareholders can be evaluated in parallel with settlement strategies. Claims should be made against those who have the ability to perform their obligations.

IV. Practical suggestions and legal basis

The legal basis includes the "Interpretation of the Supreme People's Court on Several Issues Concerning Enforcement and Settlement" (effective from March 1, 2018, and amended on December 29, 2020) regarding the effectiveness of settlement agreements, the conditions for resuming enforcement, the non-resumption of enforcement after performance, and the two-year resumption period; the "Civil Procedure Law of the People's Republic of China" (amended on December 24, 2021, and effective from January 1, 2022) regarding the provisions on voluntary settlement between the parties during enforcement; Article 54 of the "Company Law of the People's Republic of China" (amended on December 29, 2023, and effective from July 1, 2024) regarding the accelerated maturity of shareholders' contributions when the company is unable to pay off its due debts; and the "Interpretation of the Supreme People's Court on Several Issues Concerning the Change and Addition of Parties in Civil Enforcement" (effective from December 1, 2016, and amended on December 29, 2020) regarding the provisions on adding unpaid shareholders and other matters. Practical suggestions include: using a written settlement agreement and submitting it to the enforcement court for recording; attaching a clause in the installment plan stating that "violation of any installment will result in the resumption of enforcement"; requiring the other party or a third party to provide guarantees for important cases; preserving clues to the other party's assets and continuously monitoring them. For cases involving the addition of parties, it is recommended to proceed accordingly.Creditor-debtor relations and enforcement case servicesHandle it.

5. Henglu Law Firm's Advice

When implementing a settlement agreement, it's most important to avoid the reverse operation of "trading time for space" — the other party uses the agreement to stall you, while the assets are quietly transferred. Check the assets once before signing the agreement, and monitor the performance deadlines after signing. If there's a delay of one period, immediately initiate the resumption of enforcement. The two-year period starts from the expiration of the agreed performance period, so don't delay it. If the other party has shareholders who haven't paid in full or there are signs of abnormal asset movements, first consult a lawyer to evaluate the path of adding or revoking the agreement, and then decide whether to grant a grace period. If you're currently facing similar decisions, you can refer to this advice for reference.Special services and other case servicesDevelop and implement a comprehensive plan.

VI. Frequently Asked Questions

Q1: After the execution of the settlement agreement, if the other party still fails to fulfill their obligations, can I still apply to resume the execution of the agreement?

Yes. According to the "Interpretation of the Supreme People's Court on Several Issues Concerning the Implementation of Settlement Agreements" (effective from March 1, 2018, and amended on December 29, 2020), if one party fails to perform the settlement agreement, the other party may apply for resuming the enforcement of the original effective legal document, or file a lawsuit to enforce the settlement agreement, but only one of the two options is allowed. The application for resuming enforcement shall be subject to the two-year time limit, which shall commence from the last day of the performance period stipulated in the settlement agreement. If the enforcement is resumed, the part already performed by the other party in accordance with the agreement shall be deducted. If the settlement agreement has been fully performed, the enforcement shall not be resumed. If any signs of breach of contract are found, prompt action should be taken to avoid losing the opportunity during the period.

Q2: What terms and materials need to be paid attention to when signing the settlement agreement?

The agreement should be put in writing and submitted to the executing court for recording. The terms should include: a clear total repayment amount and each installment amount, a time limit, and a payment account; default situations and consequences, such as the applicant being able to apply for resuming enforcement on all remaining amounts if there is a default in any installment; a description of interest and exemption conditions; third-party guarantee or property guarantee arrangements and the scope of guarantee responsibilities; and a description of the relationship with the original effective legal document. The effective judgment, the parties' identity information, and a list of property clues should be kept on the materials. Before signing the agreement, the applicant should verify the other party's ability to perform the obligations, and after signing the agreement, the original copy of the agreement and each installment performance certificate should be retained as evidence for future resuming enforcement or litigation.

Q3: How much does it cost to execute a settlement agreement?

The execution procedure itself does not charge an additional application fee, and there is no fee payment to the court for reaching a settlement. The main cost is the legal service fee: entrusting a lawyer to draft, review the settlement agreement or participate in negotiations, which is generally charged on a per-case or percentage basis, subject to the specific provisions of the entrustment contract. If the other party breaches the contract and the execution needs to be resumed, the application execution fee will not be charged again; if the parties choose to bring a separate lawsuit based on the settlement agreement, the litigation fee shall be prepaid according to the "Measures for the Payment of Litigation Fees" (effective from April 1, 2007) based on the amount in dispute, and the losing party shall ultimately bear the responsibility. If the settlement stipulates that the other party shall bear the lawyer's fees, it can be included in the agreement and claimed together during the performance.

Q4: How long does it typically take from reaching an agreement to fully implementing the settlement?

Depending on the performance period stipulated in the agreement, the common installment plans range from half a year to two years. Procedurally, after the agreement is submitted to the execution court and recorded in the minutes, the execution case is transferred to a suspended or terminated management status; if the other party completes the performance on schedule, the execution procedure is terminated; once there is a breach of contract, after you apply for resuming the execution, the court will restart the investigation and disposition, and the progress will depend on the situation of the property investigation. If everything goes smoothly, the funds can be recovered within a few months. It is recommended to design the deadlines of each installment and the breach of contract clauses in the agreement in a compact manner, and to continuously grasp the clues of the property. Once there are signs of delay, take immediate action to shorten the actual recovery period of the funds.

Q5: If the other party delays the settlement to gain time and I'm worried that he might transfer his assets, what should I do?

Three countermeasures: First, continuously check and control the property before and after signing the agreement, confirm the status of the seized accounts and real estate and renew the seizure in time to prevent the seizure from expiring due to the expiration of the time limit; Second, set a breach of contract acceleration clause and guarantee in the agreement, specify the interest and consequences of breach of contract, and reduce the space for delay; Third, keep track of the changes in the property. If there is a gratuitous or low-price transfer, promptly initiate a creditor's right of rescission lawsuit or hold the relevant parties, such as the unpaid shareholders, accountable according to the supplementary provisions, and proceed with the resumption of enforcement in parallel. When necessary, entrust a lawyer to monitor it simultaneously and initiate relief procedures immediately upon the emergence of breach of contract signs.

The above questions and answers are mainly based on the judicial practice in the Beijing area. There may be differences in the interpretation of judgments 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·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. In the event of a dispute, please consult a practicing lawyer in a timely manner.