In business operations, delayed payments, unreturned investment capital, or breaches of financial obligations under contracts are common issues that carry significant legal risks. When the counterparty fails to cooperate, enterprises must adopt an appropriate debt recovery strategy that protects their legitimate rights while minimizing potential conflicts.

At Hnlaw, our approach to debt recovery is structured into two distinct but complementary stages.

The first stage focuses on negotiation and out-of-court settlement. This phase is crucial as it allows the parties to voluntarily fulfill their obligations, thereby saving time and cost for the client. Our legal team reviews the relevant documentation, verifies the legal status of the debt, and prepares formal demand letters for payment. We represent the client in discussions and negotiations directly with the debtor. Where necessary, Hnlaw may issue official communications to competent authorities requesting coordination and legal enforcement measures to compel performance. The objective of this stage is to reach an amicable payment agreement or to obtain a written acknowledgment of the debt, thereby avoiding the need for litigation.

The second stage involves litigation and enforcement. When negotiation fails, Hnlaw represents the client in filing and pursuing a lawsuit before the competent People’s Court, and participates throughout the entire litigation process, including appellate proceedings if required. Once a final judgment is issued, our lawyers continue to coordinate with the civil judgment enforcement agency to ensure the recovery of the actual amount owed, rather than merely securing a court decision on paper.

Throughout both stages, Hnlaw is committed to transparency in fees and progress, providing regular updates and detailed reports at every stage of the proceedings. In cases where debt recovery is unsuccessful, clients are entitled to a refund in accordance with our fee protection policy — a principle that underscores Hnlaw’s dedication to fairness and accountability.

Resolving debt recovery disputes is not only a matter of law but also a critical aspect of risk management for any business. At Hnlaw, our ultimate objective is to safeguard our clients’ lawful interests and restore their financial value in a secure, transparent, and effective manner.