Strictly distinguish between dishonest and incapable persons subject to enforcement. The Supreme Court releases typical cases.

Today, the Supreme People's Court released typical cases that rigorously distinguish between untrustworthy and incapable debtors and strengthen credit restoration. Untrustworthy debtors are those who fail to fulfill the obligations determined by effective legal documents, and have legal situations such as "having the ability to perform but not doing so" and "resisting execution." Incapable debtors are those who have completely lost the ability to perform, and the court has verified that there is no property available for execution, resulting in "unenforceable execution." Since 2024, the Supreme People's Court has guided courts nationwide to solidly carry out the classification management of "untrustworthiness" and "incapacity," while cracking down on serious untrustworthy behaviors, providing relief to incapable individuals with no property for execution, helping "honest but unfortunate" debtors to get out of debt traps and return to normal life. Courts nationwide actively apply the system of leniency in punishment for untrustworthiness and credit restoration measures to help debtors who are making efforts to repay their debts to have a financial rebirth. In 2024, the national courts newly added 2.457 million untrustworthy debtors to the list, a decrease of 23.4% year-on-year; 2.821 million debtors returned to the market through credit restoration, an increase of 35.4% year-on-year, marking the first decrease in the number of untrustworthy debtors in a decade. This not only upholds the legitimate rights and interests of winning parties, but also creates conditions for "blood regeneration" for market entities with development potential, further boosting market confidence, effectively easing social conflicts, and contributing judicial force to promote the optimization of the rule of law business environment and maintain social harmony and stability.