Is Bai Hua's pre-litigation mediation true?

Pre-litigation mediation is a common way to solve overdue debt disputes, including overdue expenses. Before overdue debts are prosecuted, the court will send mediators to negotiate with creditors and debtors to reach a repayment agreement to avoid formal prosecution and enforcement. This is a legal procedure, which aims to provide opportunities for both parties to resolve disputes and urge debtors to fulfill their repayment obligations as soon as possible. The two sides reached an agreement successfully, and the case will be closed and repaid according to the agreement. If the negotiation fails, the court will continue to formally file a case and carry out enforcement procedures. Pre-litigation mediation is the real way to solve overdue debt disputes.