21Evidence A

If you’re under a spending restriction or listed on the dishonesty registry, first find out which rule applies and request removal if possible

First, clarify whether you are subject to consumption restrictions or have been placed on the list of dishonest judgment debtors; these are two different matters. Only six specific scenarios lead to inclusion on the dishonest list, with a duration of 2 years. In seven scenarios, such as when obligations have been fully fulfilled, the court shall delete the record within 3 working days. Consumption restrictions prohibit nine categories of spending, which includes traveling on G-series high-speed trains. For items essential to daily life or business operations, applications can be made on a case-by-case basis.

Cost

No cost at all. You simply need to visit the enforcement c…

Benefit

There are only six circumstances for being included in the list of dishonest persons subject to enforcement. F…

Cost

No cost at all. You simply need to visit the enforcement court to determine which provision applies to you. Prepare proof of compliance — receipts showing you’ve paid what you owe or fulfilled the court order — as well as any required guarantee documents. For any essential personal or business expenses, you must file a separate application each time. The main difficulty is that you’ll need to make multiple trips to the court and submit many applications.

Benefit

There are only six circumstances for being included in the list of dishonest persons subject to enforcement. First, refusing to perform obligations despite having the capacity to perform. Second, obstructing or resisting enforcement through the forgery of evidence or violent threats. Third, evading enforcement through fraudulent litigation, fraudulent arbitration, or the concealment and transfer of assets. Fourth, violating the property reporting system. Fifth, violating consumption restriction orders. Sixth, refusing to perform an enforcement settlement agreement without justifiable reasons. If sufficient and effective security has been provided, or if the seized, distrained, or frozen assets are sufficient to satisfy the debt, the court shall not include the person under the first item (refusing to perform despite having the capacity to perform). If the person subject to enforcement is a minor, they shall not be included. The duration of inclusion is 2 years. In cases where obstructing or resisting enforcement through violent threats is serious, or where there are multiple acts of dishonesty, the duration may be extended from 1 to 3 years. The court shall delete the record within 3 working days under seven specific circumstances, such as when obligations have been fully performed, settlement agreements have been fully performed, or the court has ruled to terminate enforcement. Records may also be deleted in advance for those who actively fulfill their obligations or proactively correct dishonest behavior. Natural persons subject to consumption restrictions are prohibited from engaging in nine categories of high-end consumption and expenditures that are not essential for daily life or work. First, traveling by airplane, soft sleeper on trains, or second-class or higher cabins on ships. Second, high-end consumption in star-rated hotels, nightclubs, or golf courses. Third, purchasing real estate, or the new construction, expansion, or high-end renovation of houses. Fourth, renting high-end office buildings, hotels, or apartments for office use. Fifth, purchasing vehicles not necessary for business operations. Sixth, traveling and vacationing. Seventh, enrolling children in high-fee private schools. Eighth, paying high premiums for insurance and wealth management products.9. Any seat on G-series bullet trains, or first-class or higher seats on other EMU (Electric Multiple Unit) trains. Because one of these is necessary for daily life or business operations, an application must be made to the court, and approval must be obtained to proceed. Upon providing truly effective security/guarantee, or with the consent of the applicant for execution, the court may lift the consumption restriction (nationwide).

Original sources

最高人民法院 (2017 修正). 关于公布失信被执行人名单信息的若干规定(第一、二、三、四、十条). https://www.court.gov.cn/fabu/xiangqing/37182.html;最高人民法院 (2015 修正). 关于限制被执行人高消费及有关消费的若干规定(法释〔2015〕17 号,第三、八、九条):「(九)乘坐G字头动车组列车全部座位、其他动车组列车一等以上座位等其他非生活和工作必需的消费行为」. https://www.court.gov.cn/fabu/xiangqing/15046.html

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Book note

High consumption restriction refers to the restriction on high-level spending. This regulation was introduced in 2010 year, and was amended in 2015 year via Fa Shi [2015] No. 17. The name was changed to "...and several provisions regarding relevant consumption"; this clause is written according to the current text after the amendment. There are three important aspects to this change in 2015 year. First, a ninth category was added, which includes all seats on high-speed trains. Second, the limitation "by paying with its property" was deleted; it originally stated "shall not engage in the following behaviors of paying expenses with its property." Third, if an entity is subject to consumption restrictions, its actual controller is also restricted; however, for private consumption or spending personal funds, an application can be made to the executing court. The blacklist for dishonesty and consumption restrictions are two different matters; one may be subject to only one of them. Neither of these two items is equivalent to having a bad credit record; being removed from the list will not change your credit report, see Section 7, Item 19 (How to start over after being placed on the dishonest debtor list). Whether spouses or children are restricted when spending their own earned money is not explicitly stated in the current text; if you encounter such a situation, please consult the executing court.

My note