What are the legal consequences of forgiving the other party s debt?

Core tip: forgiving the other party's debt will wipe out the debt; Exemption will extinguish the creditor's right and creditor's right, exempting the other party's debt, it is also equivalent to giving up one's own creditor's right, the creditor's right is extinguished, more about the consequences of the other party's debt, the following is introduced by Legal Express.

Legal effect of debt forgiveness.

Clause. 1. If the debt is extinguished by the forgiveness of the debt, the creditor is partially extinguished from the debt, and if the entire debt is forgiven, the debt is completely extinguished.

For example, if debtor B owes creditor A a a loan of 1 million yuan, A informs B that he only needs to repay 800,000 yuan, and the debt of 200,000 yuan is forgiven. If the creditor forgives part of the debt, the part that has been forgiven does not have to be performed again, but the part that has not yet been forgiven still has to be performed.

The creditor is exempted from all debts, for example, if the garment processing department indicates to the garment customizer that it will not charge the garment processing fee and forgive all debts, all debts do not have to be performed, and the rights and obligations of the contract are terminated. In the case that the debt is fully forgiven, the debtor may request the return of the debt if there is a certificate of creditor's rights.

Clause. 2. The waiver of the extinguishment of the creditor's right and the subordinate right of the creditor's right is equivalent to the waiver of the other party's debt, which is equivalent to the waiver of one's own creditor's right, and the extinguishment of the creditor's right, the security right, interest right, and the claim for liquidated damages subordinate to the creditor's right are also extinguished.

For example, if A forgives B's debt, C's guarantee liability for B's performance has no basis and will inevitably be extinguished together. However, the waiver of the secured debt does not affect the existence of the secured debt. For example, if A exempts C from the security obligation, it does not mean that B is exempted from the debt, and B still has to perform the debt.

Note: The discharge of debts must not be detrimental to the interests of third parties.

For example, if creditor A pledges his claim against debtor B to C, if A forgives B's debt, C's pledge right to A ceases to exist, which is detrimental to C's interests. Accordingly, a creditor that has granted a security interest in a claim may not discharge the debtor against the secured right holder.

Legal analysis: The legal consequences of debt forgiveness are as follows: 1. If the debt is extinguished, the creditor forgives part of the debt, it is partially extinguished, and if the debt is forgiven, the debt is completely extinguished; 2. The security rights, interest rights, and liquidated damages claims that are subordinate to the creditor's rights are also extinguished.

Legal basis: Article 557 of the Civil Code of the People's Republic of China In any of the following circumstances, the creditor's rights and debts shall be terminated: (1) the debt has been fulfilled; (2) Debts are offset against each other; (3) The debtor deposits the subject matter in accordance with law; (4) Creditors are exempted from debts; (5) The debts of the struggle for power before the debt rush belong to the same person; (6) Other circumstances provided for by law or agreed upon by the parties to terminate.

If the contract is terminated, the rights and obligations of the contract shall be terminated.

Legal consequences of debt forgiveness:

1. If the creditor forgives part of the debt, the debt is partially extinguished, and if the whole debt is forgiven, the debt is completely extinguished;

2. If the creditor forgives part of the debt, it does not affect the assumption of the other part of the debt;

3. Exemption from the extinguishment of creditor's rights and subordinate rights of creditor's rights.

1. How to recover the guarantor after it is executed.

After the guarantor is compelled by the people's court to repay the debt, the guarantor may recover the debt, and if the debt is not repaid, the guarantor may sue the debtor. The guarantor has a guarantee to pay off the guaranteed debt. The guarantor's act of repayment exempts the debtor from its liability to the creditor.

If the debtor's repayment liability to the creditor is partially or completely extinguished due to the guarantor's repayment behavior, the guarantor may exercise the right of recourse within the scope of repayment. The guarantor bears the guarantee liability without fault and has no intention of gifting.

2. Whether debt forgiveness between husband and wife is possible.

Debts between spouses can be forgiven.

1. The debt has been fulfilled as agreed;

2. Terminate the contract;

3. Debts offset each other;

4. The debtor extracts the subject matter in accordance with the law;

5. Creditors are exempted from debts;

6. The creditor's rights and debts belong to one person;

7. Other circumstances stipulated by law or agreed by the parties.

If the creditor forgives part or all of the debtor's debts, the rights and obligations of the contract are partially or completely terminated.

3. Do co-borrowers need to bear all the arrears?

Co-borrowers are not required to bear the entire amount owed. Here's why:

1. The co-borrower may sue only one person;

2. If the debts of some joint debtors are forgiven by creditors, the debts of other debtors to creditors shall be extinguished within the scope of the share that the joint debtors should bear;

3. If the debts of some joint debtors and the creditor's claims are attributed to the same person, the creditor's claims against the other debtors continue to exist after deducting the debtor's share;

4. If the creditor delays the payment and receipt of some of the joint debtors, it shall take effect on the other joint debtors.

Legal analysis: The legal consequences of exempting the remaining debts are as follows: 1. If the debts are extinguished, the creditor will be exempted from hunger and boredom, and if the debts are exempted, the debts will be completely extinguished; 2. The security rights, interest rights, and claims for liquidated damages that are subordinate to the creditor's rights are also extinguished.

Legal basis: Article 557 of the Civil Code of the People's Republic of China Where any of the following circumstances is covered, the creditor's rights and debts shall be terminated: (1) the debt has been fulfilled; (2) Debts are offset against each other; (3) The debtor deposits the subject matter in accordance with law; (4) Creditors are exempted from debts; (5) The creditor's rights and debts are attributed to the same person; (6) Other circumstances provided for by law or agreed upon by the parties.

If the contract is terminated, the rights and obligations of the contract shall be terminated.

The legal consequences of debt forgiveness are:

1. Cancellation extinguishes debts, and if part of debts are exempted, part of the debts are extinguished; If all debts are forgiven, all debts shall be extinguished;

2. Exemption from the right to extinguish the creditor's right and the obligatory right to erect the creditor's right;

3. If the discharge of debts harms the interests of a third party, the third party has the right to exercise the right of revocation.

[Legal basis].

Article 575 of the Civil Code.

Where the creditor forgives part or all of the debtor's debts, the creditor's rights and debts are partially or wholly terminated, except where the debtor refuses within a reasonable period of time.

Article 579.

If one of the parties fails to pay the price, remuneration, rent, interest, or fails to perform other monetary obligations, the other party may request payment.

Article 580.

When one party fails to perform a non-monetary debt or the performance of a non-monetary debt does not conform to the agreement, the other party may request performance, except in one of the following circumstances:

1) Legally or factually unable to perform;

2) the subject matter of the debt is not suitable for compulsory performance or the cost of performance is excessive;

3) The creditor does not request performance within a reasonable period of time.