Frequently Asked Questions

23 2026-10

Do arbitration mediation documents have enforceability?

The arbitration mediation agreement shall take effect upon its signing and acceptance by both parties, and shall have the same enforceability as the arbitral award. If either party fails to perform the agreement, the other party may apply to the court for compulsory enforcement, and the enforcement period shall be two years.

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23 2026-10

How credible is the colleague's witness statement?

Colleagues' testimonies are statutory evidence and can be admitted as evidence, but their probative force may be affected by their vested interests. Testimonies from witnesses who have a vested interest in a party cannot be used to determine the case alone, and they must be corroborated by attendance records, pay slips, and other evidence.

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23 2026-10

Are the statutes of limitations for promissory notes and loan notes the same?

The statute of limitations for promissory notes and IOUs is both three years, but the starting points are different: promissory notes start from the expiration of the agreed repayment period or the reasonable grace period; IOUs, as settlement documents, usually start from the date of issuance. In practice, it is advisable to promptly urge the other party to interrupt the statute of limitations.

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23 2026-10

If the name on the IOU is written incorrectly, can I still get the money back?

If the name on the IOU is written incorrectly, it does not necessarily mean that the creditor's rights will be lost. The creditor can prove that the name on the IOU is the same as the actual borrower through methods such as ID card numbers, transfer records, chat records, audio recordings, etc. If necessary, the creditor can apply for handwriting identification.

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23 2026-10

How much of the debtor's salary can be deducted?

The wages can be withheld and withdrawn, but the necessary living expenses of the debtor and the dependents supported by him/her must be reserved. Where there are minimum living standards in the local area, the amount shall be determined in accordance with such standards, and priority shall be given to alimony, medical expenses, etc.

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23 2026-10

Can the only vehicle owned by the debtor be auctioned off?

Only vehicles can generally be sealed up and auctioned: vehicles are movable property and are not essential for living, so the court can evaluate and auction them to settle debts; if there are objections to the enforcement actions or ownership, the parties concerned can file an enforcement objection in accordance with the law.

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23 2026-10

Will the legal representative of the company be detained if the company owes debts?

In principle, the company's debts shall be paid off with the company's assets, and the legal representative of the company will generally not be detained for this reason; however, if the legal representative refuses to perform the effective legal documents, obstructs the execution of the judgment, or engages in acts of personal identity confusion, they may be fined or detained.

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23 2026-10

What should a creditor do if the debtor suddenly disappears?

The debtor's disappearance does not affect the creditor's rights: the creditor can directly file a lawsuit and serve the debtor by public announcement, enforce the judgment, and conduct online investigation and control; if the debtor's whereabouts remain unknown for more than two years, the creditor can apply for a declaration of the debtor's disappearance; and the statute of limitations is three ...

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23 2026-10

What should I do if I lend out cash without a receipt?

Even without proof, you can still protect your rights in the event of a cash loan dispute. Within the three-year statute of limitations, you can use transfer records, chat logs, evidence of debt collection, and audio recordings to strengthen the chain of evidence. If necessary, you can file a lawsuit and apply for property preservation.

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