Debt disputes are expected to become less of a "headache" for both domestic and foreign creditors in Beijing, as the city's courts have instituted "obligation documents" for use in the settlement of debt cases. The new procedure, initiated by the Beijing No 2 Intermediate People's Court, will give creditors a lifelong right of requesting the court to carry out forcible debt collection any number of times, as long as the debtors are found to have the ability to pay.
No additional fees will be paid to take advantage of the procedure.
Court Director Qin Bingrui, in charge of law enforcement, noted the new ruling also applies to foreign enterprises and individuals involved in debt disputes with domestic debtors.
