Attorney Larry Secured a Settlement in a Property Division Dispute Involving a Foreign Trade Entrepreneur, Helping Reduce the Debt and Lift the Property Seizure

Recently, a creditor’s subrogation and property division dispute handled by Attorney Larry Zhou’s team at Landing (Shenzhen) Law Office was successfully concluded. The client was a foreign trade entrepreneur whose business encountered serious difficulties due to changes in the enforcement of export tax rebate policies, which in turn led to a dispute with an investor over investment funds and resulted in a substantial debt burden.

In this matter, through continued representation at both the first-instance and second-instance stages, as well as multiple rounds of communication and settlement negotiations, Attorney Larry Zhou ultimately assisted the client in reaching an agreed resolution with the opposing party, which agreed to waive part of the debt. After the client promptly fulfilled the payment obligation, the opposing party withdrew all related lawsuits and lifted the seizure over the assets involved, thereby resolving a matter that had troubled the client for a considerable period of time.

Prior to this case, the client had been required under an effective judgment in another matter to bear a significant amount of debt. During enforcement proceedings, the opposing party discovered that the client’s spouse owned a property and applied to the court to seize that property. Thereafter, the opposing party further initiated a creditor’s subrogation action for property division, naming both the client and the client’s spouse as defendants, and sought a judicial determination that the property was marital community property and that the client held a corresponding share in it, so as to facilitate subsequent enforcement and disposition. This action not only subjected the client to continuing enforcement pressure, but also caused substantial distress to the client’s spouse in terms of property rights and normal daily life.

After being retained at the stage of the creditor’s subrogation and property division litigation, Attorney Larry Zhou systematically reviewed the case facts, the nature of the property, litigation risks, and the overall repayment path. On the one hand, in response to the opposing party’s strategy of expanding the scope of enforcement through the property division action, Attorney Larry continuously addressed and coordinated around the key disputed issues. On the other hand, taking into account the security of the client’s family assets, the cost of handling the case, and the risks of subsequent enforcement, Attorney Larry simultaneously advanced settlement discussions in an effort to achieve an overall resolution while controlling losses.

During the course of the case, after sustained communication and multiple rounds of settlement negotiations, the parties ultimately reached an agreement: the opposing party agreed to make a substantial reduction to the original debt, and after the client completed payment, the opposing party withdrew all related cases and cooperated in lifting the seizure over the property involved. As a result, the multiple layers of litigation and enforcement pressure faced by the client and the client’s spouse were eliminated together, and the matter was brought to a substantive conclusion.

The successful resolution of this case not only effectively reduced the client’s debt burden, but also meaningfully protected the property rights and interests of the client’s spouse. It further demonstrated Attorney Larry Zhou’s professional capability and practical experience in handling complex enforcement-related disputes, marital property controversies, and overall dispute resolution through settlement.

At the same time, this case also serves as a reminder to foreign trade entrepreneurs that, when accepting investment, they should ensure that investment agreements are clearly executed and that the rights and obligations among the foreign trade enterprise, its shareholders, and the investor are clearly defined, so as to avoid investment disputes that may lead to substantial losses.