Consequences of non-repayment of dunning by the Ministry of Justice

The consequences of this situation include civil liability, credit record damage and legal proceedings.

1. Civil liability: The debtor shall bear the civil liability for servicing the principal and interest. If the legal department fails to repay the loan after collection, it may cause additional expenses such as overdue penalty interest and liquidated damages.

2. Credit record is damaged: loans or arrears that are not repaid on schedule will be recorded in the credit information system of the People's Bank of China, which will lead to a decline in the credit rating of individuals or enterprises, and affect subsequent bank loans, credit card applications and other services that require a good credit record.

3. Legal proceedings: The Ministry of Justice will bring a lawsuit to the court on behalf of the creditor's rights in case of repeated unsuccessful collection, demanding compulsory repayment of debts. Once entering the judicial process, the debtor will not only face the risk of losing the case, but also be sentenced by the court to enforce the property to repay the debt.