The new policy of inability to repay debts is that repayment can be postponed with the consent of creditors.

People's Republic of China (PRC) Civil Code

Article 676 If the borrower fails to repay the loan within the time limit, it shall pay the overdue interest in accordance with the contract or the relevant provisions of the state.

Article 678 The borrower may apply to the lender for extension before the repayment period expires. If the lender agrees, it can be postponed.

2. What are the terms of the loan contract?

People's Republic of China (PRC) Civil Code

Article 668 A loan contract shall be in written form, except as otherwise agreed between natural persons.

The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.

Article 669 The borrower is obliged to enter into a loan contract truthfully, and the borrower shall truthfully provide information on the business activities and financial status related to the loan as required by the lender.

Article 670 Interest on a loan shall not be deducted in advance, and interest on a loan shall not be deducted from the principal in advance. If the interest is deducted from the principal in advance, the loan shall be repaid according to the actual loan amount and the interest shall be calculated.

Article 671 Consequences of Lender's Failure to Provide Loan and Borrower's Failure to Collect Loan as agreed; If the lender fails to provide the loan according to the agreed date and amount, thus causing losses to the borrower, it shall compensate for the losses.

If the borrower fails to collect the loan according to the agreed date and amount, it shall pay interest according to the agreed date and amount.

Article 672 The lender may inspect and supervise the use of the loan as agreed. The borrower shall provide relevant financial and accounting statements or other materials to the lender on a regular basis as agreed.

Article 673 Liability for Borrower's Failure to Use the Loan for the Agreed Purpose If the borrower fails to use the loan for the agreed purpose, the lender may stop issuing the loan, recover the loan in advance or terminate the contract.

Article 674 The borrower shall pay interest at the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and cannot be determined according to the provisions of Article 510 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan term is more than one year, it shall be paid at the end of each year; if the remaining term is less than one year, it shall be paid together with the loan.

Generally speaking, as long as the debt relationship is legal and effective, the repayment obligation will not be exempted because the parties are temporarily unable to repay. Unless the creditor agrees, in addition to delaying repayment, it is also possible to negotiate with the creditor to repay by installments. In addition, if the property is transferred to realize the superficial phenomenon of insolvency, the creditor may apply for property preservation.