Top Court vows pressure on judgment debtors while pushing for humanized measures

China's highest court reiterated its commitment to enforcing court orders against debtors on Monday, while calling for a more nuanced approach that takes into account individual circumstances and economic realities.

Supreme People's Court President Zhang Jun made the remarks at an annual work meeting in Beijing, highlighting the court's ongoing efforts to protect the rights of creditors facing non-compliance. Over the past decade, various measures have been implemented, including travel restrictions and limitations on high-end spending, to compel debtors to fulfill their obligations.

Acknowledging concerns about the potential impact of such restrictions, Zhang emphasized the need for precision and humanized practices. The court is currently revising a key judicial interpretation to improve the classification of enforcement measures and establish mechanisms for credit reconstruction.

"Whether these measures are appropriate touches upon issues of justice, the lives and businesses of debtors, and even the survival of enterprises," Zhang said. "Prudence is vital."

He specifically stressed the need to differentiate between personal assets and company assets, urging judges to avoid "excessive seizure" of corporate property that could jeopardize operations. Additionally, the court is supporting revisions to the Bankruptcy Law to explore the establishment of a personal bankruptcy system, offering an alternative path for individuals struggling with insurmountable debt.