Court tries to rope in runaway debtors
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A campaign has kicked off to crack down on dishonest debtors who take advantage of legal loopholes to avoid paying debts, the country's top court announced on Thursday.
The campaign will continue throughout the year, according to the Supreme People's Court of China.
A stricter and more detailed property examination system will be established, and more governmental departments including the police and banks will take part in getting back the debtors' property to enforce court decisions.
For example, not only the debtor's current property but also his asset flow in the year before the court decision will be examined, given that more legally-minded debtors transfer their assets before trials or rulings to avoid payment.
Dishonest debtors will also be limited to traveling with the help of a communication system between the courts and Civil Aviation Administration of China to be established in July.
Under the system, the administration should help courts stop debtors from taking flight once they are found to be avoiding debts.
In addition, other more severe punishment will be implemented if dishonest debtors refuse to cooperate.
Courts nationwide have seen many sly and secret ways to avoid paying debts in recent years. In some cases, couples faked divorces so the debtor could claim bankruptcy after his property was given to his wife. In other cases, debtors transfer property to a relative or a partner before trial to claim they are incapable of paying.
