To effectively address financial loan enforcement cases and bridge the final gap in financial dispute resolution, the Huai'an Commercial and Financial Collaborative Governance Center has, since last year, innovatively implemented a mechanism combining debt restructuring with notarized enforcement. This approach has revitalized numerous cases previously stuck in execution deadlock, offering a replicable "Huai'an Model" for the diversified settlement of financial conflicts.

According to statistics, as of August this year, the center has processed 233 cases with a total value of 220 million yuan using this mechanism. It has facilitated the circulation of over 25,000 financial disputes and secured more than 820 million yuan in financial claims. In the first half of this year, first-instance financial dispute cases filed and concluded across Huai'an courts saw a year-on-year decline of 17.24% and 9.37%, respectively.

A borrower, surnamed Zhou, took out a bank loan to purchase a home but later defaulted more than ten times due to a family member's illness and business losses, leading the bank to file a lawsuit. After the case was transferred to the center, mediation resulted in an installment repayment agreement that received judicial confirmation. However, Zhou failed to meet the payment schedule again following an unexpected family crisis, pushing the case into the enforcement phase. The center faced what seemed like an intractable dilemma: safeguarding the financial institution's legitimate claims while acknowledging the debtor's inability to perform due to force majeure.

Instead of resorting to straightforward compulsory enforcement, the center collaborated with bank risk control personnel and mediators to engage directly with the borrower and thoroughly assess the situation. It was determined that Zhou, despite his default record, had not intended to evade debt and still possessed some repayment capacity and willingness. Consequently, the center opted for debt restructuring to ensure the repayment plan remained viable.

Following coordination, the bank agreed to restructure the remaining debt and extend a new loan after Zhou repaid a portion of the overdue amount. By extending the repayment period and adjusting repayment methods, the monthly repayment burden was significantly reduced, shifting the borrower from a state of "unable to pay" to "able to pay."

To prevent a repeat default after restructuring, the center implemented notarized enforcement to secure the bank's rights and safeguard financial claims. After the restructured loan was disbursed, the center guided the bank and Zhou to apply for notarized enforcement with the notary office, granting the new loan contract direct enforceability. In the event of another default, the financial institution can bypass litigation and apply directly to the court for enforcement based on the notarized document. This mechanism lowers the cost of rights protection for financial institutions while preserving room for negotiated settlement for the borrower.

The "debt restructuring plus notarized enforcement" approach promoted by the Huai'an Commercial and Financial Collaborative Governance Center achieves seamless integration and closed-loop handling across filing, trial, and enforcement stages, completing the entire mediation-to-enforcement chain. It establishes a "non-litigation matrix" encompassing mediation, notarization, and arbitration, creating a progressive dispute resolution system of "mediation first, notarization empowerment, arbitration diversion, and judicial backup." The notarized enforcement mechanism bypasses litigation to apply directly for execution, significantly shortening the cycle for realizing financial claims and reducing resolution costs. Moreover, this method, which maintains financial risk defense while offering debtors a viable path forward, effectively harmonizes legal and social outcomes. The non-litigation approach saves borrowers 50% in time costs and 30% in expenses.