[Direct answer]That's fine. If the debtor disposes of property interests without compensation, such as by waiving their claims, waiving the guarantee of claims, or transferring property free of charge, or maliciously extending the performance period of their due claims, thereby affecting the creditor's ability to realize their claims, the creditor may request the people's court to revoke the debtor's act in accordance with Article 538 of the Civil Code of the People's Republic of China (effective from January 1, 2021). Unlike low-price transfers, disposition of property without compensation generally does not require the counterparty to know or should know about it. As long as it affects the creditor's ability to realize their claims, the creditor can claim revocation. The action is aimed at identifying the facts of disposition of property without compensation and exercising the right of revocation within the statutory exclusion period.

I. Problem background and typical scenarios

Free gifts and free transfers are common ways to evade debts: After becoming indebted, debtors give away property and equity to others or transfer ownership to relatives free of charge. On the surface, this appears legal, but in reality, it undermines their ability to repay debts. Compared with low-price transfers, the subjective requirements for free disposal are lower, and creditors have more room to protect their rights. However, it is also subject to the statute of limitations, and delays are not allowed.

II. Key points of contention

First, whether it constitutes a gratuitous disposition of property rights. Second, whether it affects the realization of creditor's rights. Third, whether the scope of revocation is limited to the creditor's rights. Fourth, whether the gift involves circumstances that are not subject to revocation according to law, such as notarization and public welfare. Fifth, the starting and expiration dates of the exclusionary period. Sixth, the allocation of the burden of proof and the time point of evidence fixation. If the debtor claims that the gift belongs to internal family arrangements or there is a consideration, the debtor should also be required to provide evidence of the source of the funds and the authenticity of the consideration.

III. Professional analysis by Henglue Law Firm

The right of revocation in the case of gratuitous disposition of property has more lenient constitutive elements than that of low-price transfer: the law does not require creditors to prove that the counterparty subjectively knew or should have known. As long as the debtor engaged in acts of gratuitous disposition of property rights and interests, and such acts affected the creditor's right to obtain satisfaction, the creditor may claim revocation. In practice, three key points need to be noted. Firstly, distinguish between "gratuitous" and "paid": gifts, gratuitous transfers, and waivers of creditor's rights belong to gratuitous disposition, while transactions with reasonable consideration should be subject to the review framework of low-price transfer. Secondly, determine whether it affects the creditor's right to obtain satisfaction: it depends on whether the debtor's liable property is insufficient to satisfy the debt after the disposition; if the debtor still has sufficient property, the significance of revocation is limited. Thirdly, the scope of revocation is limited to the creditor's claim, and the part exceeding that is generally not supported. In addition, if the gift has been notarized or belongs to circumstances that cannot be revoked by law, or involves gifts for public welfare, it is necessary to judge whether and how to revoke it in accordance with specific provisions. When handling such cases, Henglue Law Firm usually first verifies the facts and timing of gratuitous disposition through industrial and commercial registration, real estate registration, and fund flows, and then compares the changes in the debtor's repayment ability to form a clear causal chain, avoiding suing rashly based solely on the statements of the parties.

IV. Practical suggestions and legal basis

Action List: 1. Identify the facts, objects, and timing of the gratuitous disposition through registration information and financial transaction records; 2. Determine whether the debtor's post-disposition liable assets are sufficient to satisfy the debt; 3. Determine the scope of the revocation request within the limits of the creditor's claim amount; 4. File a lawsuit within one year from the date when the debtor knew or should have known the grounds for revocation, while observing the maximum statute of limitations of five years. Additionally, if the donee has transferred the property to a third party, determine whether the third party acted in good faith and paid a reasonable consideration to determine whether the disposition can be revoked. If necessary, claim corresponding compensation liability; 5. For donations that have been notarized, also review whether they fall under the special circumstances where revocation is prohibited by law. Main legal basis: Articles 538, 540, and 541 of the Civil Code of the People's Republic of China (effective from January 1, 2021); Specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

The three principles for revoking a gratuitous gift are: the gratuitous disposition does not depend on whether the counterparty is aware of it; the key point is whether it affects the realization of the creditor's rights; the scope of the request is limited to the creditor's rights, and the time period cannot be delayed. For matters involving creditor's rights, debts, and enforcement, you can seek assistance through legal channels.Creditor's rights and debts, and enforcementThe service provides a comprehensive solution, which involves the transfer of assets in marital and family matters.Divorce and family disputesFor those involved in the transfer of property ownership through gift, you may refer to the relevant provisions in the "Regulations on the Administration of Real Estate Transactions".Real estate transactions and construction projectsThis column provides advice on the intertwined issues of inheritance and gift-giving.Inheritance and family disputesFor teams involved in the free transfer of company equity, please refer to the relevant informationBusiness and contract disputes in enterprisesFor any questions or difficulties, please contact us via the column.Special servicesTeam.

VI. Frequently Asked Questions

Q1: If the debtor donates the house to a relative without compensation, can the donation be revoked?

If the gift constitutes a gratuitous disposition of property rights and affects the realization of the creditor's rights, the creditor may request the court to revoke it, and there is no need to prove that the donee was aware of it.

Q2: What evidence do I need to prepare?

Donation or transfer records, creditor's claim vouchers, and materials on the debtor's property changes and repayment ability, which are used to prove the causal relationship between the gratuitous disposition and the damage to the creditor's rights.

Q3: How are attorney fees generally calculated?

Generally, the fee structure and payment stages can be agreed upon in advance based on the amount of the case, the workload of investigation and evidence collection, and the complexity of the case.

Q4: How long does the entire process take?

Depending on the circumstances of the evidence collection and trial, the process usually takes several months; however, the duration may be extended due to procedures such as preservation of evidence and appeals.

Q5: What should I do now?

Identify the facts and time of the gift as soon as possible, assess the debtor's ability to repay the debt, and consult a lawyer within the statutory period to decide whether to file a lawsuit for the right of revocation.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.