Failure to repay debts leads to being listed as a dishonest person; marital property is hard to protect
[2] Compiled from: Lanshan District People's Court
Case Review
Cheng purchased wood panels from a board factory in Lanshan District (hereinafter referred to as "the Board Factory") over a long period but failed to pay for the goods on time. After repeated unsuccessful demands for payment, the Board Factory filed a lawsuit against Cheng with the Lanshan District People's Court. Through the effective legal instruments of the first and second instances, it was determined that Cheng was to repay the principal amount of the outstanding payment and corresponding interest. Upon expiration of the performance period, Cheng still failed to fulfill his legal obligations. In 2023, the Board Factory applied to the Lanshan District People's Court for compulsory enforcement.
After accepting the enforcement case, the Lanshan District People's Court discovered through the online investigation and control system that there was no property available for enforcement under Cheng's name. As Cheng was not a local resident, the enforcement judge promptly initiated an entrusted investigation. However, no property available for enforcement was found under his name in either his registered domicile or his place of work, and the case reached an impasse. “The person subject to enforcement has been running a business for a long time. If he has substantial debts, there is a relatively high possibility that he has concealed or transferred assets,” the enforcement judge adjusted the enforcement plan and investigated Cheng's marital status as well as the property under his spouse's name, ultimately discovering that Cheng's wife, Wang, owned a piece of real estate.
[5] Upon verification, the property was purchased during the marriage of Cheng Mou and Wang Mou. Based on relevant legal provisions, the enforcement judge determined that the property was marital joint property and legally seized Cheng Mou's share in the property. Currently, the case is proceeding with the auction and sale of the involved property.
I'm ready to help translate your Chinese legal content into professional English for the Shenzhen Zhiming Law Firm website. Please provide the Chinese text you'd like me to translate.The Civil Code of the People's Republic of China
Article 1062
The following property acquired by a husband and wife during the period of their marriage shall be community property, jointly owned by the husband and wife:
(1) Wages, bonuses, and remuneration for labor services;
(2) Income from production, business operations, and investment;
(3) income from intellectual property rights;
(4) property inherited or received as a gift, except as provided in Item 3 of Article 1063 of this Law;
(5) Other property that shall be jointly owned. Both spouses have equal rights to manage the jointly owned property.
Civil Procedure Law of the People's Republic of China
Article 238
If a person who is not a party to the case files a written objection to the subject matter of enforcement during the enforcement process, the people's court shall review the objection within fifteen days from the date of receiving the written objection. If the grounds are established, it shall rule to suspend enforcement against the subject matter; if the grounds are not established, it shall rule to reject the objection. If the person who is not a party to the case or a party to the case is dissatisfied with the ruling and believes that the original judgment or ruling is erroneous, the matter shall be handled in accordance with the trial supervision procedure; if the objection is unrelated to the original judgment or ruling, a lawsuit may be filed with the people's court within fifteen days from the date of service of the ruling.
[4] Author's Opinion
In reality, it is very common for a debtor to refuse to repay a debt and, even if the creditor wins the lawsuit, there are no assets available for enforcement. At this point, many people cannot help but ask: Can the debtor’s marital community property be subject to enforcement?
Property formed during the marriage is generally considered joint property unless otherwise agreed, with both parties holding shares. In cases where one spouse is the person subject to execution, for general movable property solely possessed by the spouse of the person subject to execution, immovable property, specific movable property, and other property rights registered in the name of the spouse of the person subject to execution, if investigation shows that the property was acquired by the person subject to execution and their spouse during the marriage, it shall be considered marital joint property, and the share of the person subject to execution in that property can be treated as executable property. If the applicant for execution submits a written application to seal up, detain, or freeze such property, the people's court may do so. If the spouse of the person subject to execution raises an objection and requests exclusion from execution, it shall be reviewed in accordance with Article 238 of the Civil Procedure Law. Chinese law provides equal and solid legal protection for both creditors of monetary debts and co-owners of liability property, ensuring that their legitimate rights and interests are not infringed upon, while also conveying a clear message to the public: Honesty and law-abiding are obligations of every citizen. No one should attempt to evade legal liability through means such as circumventing execution, as this not only harms the rights of others but also leads to the loss of one's own credibility.
