[Direct answer]In the Beijing area, it is not allowed to change one's mind at will, but the rules are divided into two stages. If an agreement to offset debts with property is reached after the expiration of the debt performance period, it shall be binding on both parties upon its establishment. If the debtor reneges on the agreement, the creditor may request the debtor to continue to perform the debt offset agreement or claim breach of contract liability. If the debt offset arrangement is reached before the expiration of the performance period, it is in the nature of a preliminary agreement for alternative performance. If the debtor reneges on the agreement or fails to perform it, the creditor can only retroactively claim the original debt and cannot directly demand that the debtor deliver the offset property. Whether the debt offset property has been delivered and transferred, and when the agreement was signed, determine completely different legal consequences of reneging on the agreement.

I. Problem Background and Typical Scenarios

It's difficult to collect debts, so the two parties agreed to use houses and cars as collateral for debt repayment. However, the other party delayed the transfer of ownership after signing the agreement; or the value of the collateral has increased, and the debtor wants to withdraw and take it back; or the value of the collateral has decreased, and the creditor thinks it's not worth it and wants to withdraw. There may be changes on both sides of the agreement for debt repayment with collateral. If the rules for handling such situations are not clear, the first step will be taken incorrectly.

II. Key points of contention

First, the significance of the establishment time of the agreement: the effectiveness of the agreement is different before and after the expiration of the performance period. Second, the relationship between the new debt and the old debt: whether the old debt is extinguished by the debt settlement agreement. Third, the right to choose the performance request: the boundary between requesting the performance of the debt settlement agreement and requesting the performance of the original debt. Fourth, the defects of the debt settlement items and the rescission: how to handle the delivered property with rights encumbrance or quality problems.

III. Professional analysis by Henglue Law Firm

Based on Henglue Lawyer's experience in handling debt repayment and contract disputes, there are four key points to focus on in cases of debt repayment by property: 1. **Definition of the contract**: If the debt repayment agreement is reached after the performance period expires, it constitutes an independent arrangement to renew the debt, and the creditor has the right to demand performance. If the agreement is reached before the expiration date, it is a preliminary arrangement for debt repayment by property. If the debtor fails to perform, the creditor cannot directly demand the delivery of the property but must revert to the original creditor-debtor relationship. 2. **Option of choice**: If the agreement does not explicitly extinguish the old debt after expiration, the old and new debts coexist. The creditor may choose to enforce either one, but the old debt will be extinguished once the new debt is fully performed. If the debtor uses the old debt to defend the debt repayment agreement, it is generally not valid. 3. **Performance of the agreement**: If the debt repayment agreement has been partially performed, the creditor cannot arbitrarily renege on it based on the principle of good faith. If the property has been delivered, its return must be based on statutory or contractual grounds. 4. **Settlement of the property**: If there is a difference between the value of the property and the amount of the debt, the parties shall settle it according to the agreement. If no agreement exists, the value may be adjusted based on the principle of fairness. If the property is confirmed to be unavailable for delivery (e.g., having been seized or disposed of), the creditor may instead claim breach of contract damages. Additional reminder: If the debt repayment agreement harms the interests of third parties or constitutes a malicious collusion to evade enforcement, the third party may request its revocation or invalidation. This is a weapon shared by both the party who reneges on the agreement and the third party involved in the case.

IV. Practical suggestions and legal basis

The first step is to clarify the amount of the creditor's claim, the valuation of the debt-settling property, the delivery and transfer deadline, and whether the old debt is extinguished when signing the contract. The second step is to sign a formal debt-settling agreement after the performance period expires to avoid the effect of discounted pre-agreed terms. The third step is to handle the delivery and transfer as soon as possible and keep records. Partial performance also has binding significance. The fourth step is to send a letter of reminder to fix the facts of the breach of contract if the other party changes their mind, and then choose to request continued performance or sue according to the original debt. Main legal basis: Article 577 of the Civil Code of the People's Republic of China (effective from January 1, 2021) on breach of contract liability, Article 563 on statutory rescission, and Article 590 on contract performance rules; Article 64 of the Interpretation of the Supreme People's Court on the Application of the Civil Code Regarding the Guarantee System (effective from January 1, 2021) on debt settlement with property; specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Reminder

There are three key points in a debt settlement agreement: the agreement signed after the expiration of the time limit is the most binding, and the agreement signed before the expiration of the time limit leaves room for change; the agreement should clarify whether the old debt has been fully settled, and the rules for settling the balance cannot be omitted; and after signing the agreement, it is necessary to transfer ownership as soon as possible. Leaving a record of performance is the best way to prevent the other party from changing their mind. For disputes involving debt settlement by property, you can resolve them through legal channels.Creditor's rights and debts, and enforcementYou can refer to the overall solution for services involving the transaction of properties used to repay debts.Real estate transactions and construction projectsFor the column, if it involves corporate debt restructuring, it can be combined with other related content.Company and commercial disputesFor any questions regarding the design of the agreement terms, please feel free to consult usSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: After signing the debt repayment agreement, if the other party refuses to handle the transfer of ownership, can I directly sue them to demand the transfer of ownership?

The debt repayment agreement signed after the performance period expires can be implemented, and continued performance is the basic remedy. However, for the debt repayment arrangements reached before the performance period expires, the debtor cannot directly request the delivery of the debt repayment items, and should instead sue to enforce the original debt obligation.

Q2: If the value of the debtor's assets used to repay the debt has increased and the debtor wants to reclaim them, what should they do?

If the agreement has been established and partially or fully performed, there is no legal basis for revoking it; the creditor may refuse and demand continued performance. Once the ownership has been transferred, there is no possibility of returning the property, and the risk of price fluctuations will transfer along with the change of ownership.

Q3: Is the old debt still valid after signing the debt repayment agreement?

If the agreement does not explicitly stipulate that the old debt will be extinguished, the old debt and the new debt will coexist, and the creditor can choose to claim either one; the old debt will only be extinguished after the new debt has been fulfilled, which provides double protection for the creditor.

Q4: What should I do if the house I bought is sealed up and can't be delivered?

If the delivery cannot be made due to reasons not attributable to either party, the purpose of offsetting the debt will be thwarted, and the creditor may convert the debt into a claim based on the original creditor's rights and claim responsibility for the debtor's delay or inability to perform the obligation; if the debtor maliciously sets up a pledge to evade offsetting the debt, his responsibility will be aggravated.

Q5: Can other creditors revoke the debt settlement agreement on the grounds that it damages their creditor's rights?

Yes. If the debtor offers compensation in lieu of debt at no cost or at a significantly unreasonable low price, which affects the realization of other creditors' claims, the creditor may exercise the right of revocation in accordance with the law; and the agreement made in collusion to evade enforcement may also be declared invalid.

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 Henglue Law Firm for specific situations.

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 Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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 case of disputes, please consult a practicing lawyer in time.