[Direct answer]In the Beijing area, if a debtor or his counterparty colludes with a third party maliciously to harm the creditor's interests through false transactions, false litigation, or fictitious debts, the relevant civil legal acts shall be invalid, and the creditor may request the people's court to confirm the invalidity and pursue corresponding responsibilities according to law. According to Article 154 of the Civil Code of the People's Republic of China (effective from January 1, 2021), civil legal acts that harm the legitimate rights and interests of others through malicious collusion between the actor and the counterparty are invalid; Article 146 stipulates that civil legal acts performed by the actor and the counterparty with false expressions of intention are invalid. In serious cases, it may also constitute false litigation, and the perpetrators may face fines, detention, or even criminal responsibility. The action aim is to fix the evidence of collusion and promptly initiate a lawsuit to confirm the invalidity or revoke the contract.

1. Problem background and typical scenarios

"Malicious collusion" is a frequent problem in debt evasion and fraudulent litigation: debtors sign fraudulent sales contracts with others, fabricate loans, use property to offset debts, or obtain effective legal documents through fraudulent litigation to counter real creditors. The key to identifying and addressing this issue lies in using objective evidence to expose the falsity of the transactions, rather than simply relying on verbal accusations.

II. Key points of contention

First, how to determine "malicious collusion" and "false expression of intention". Second, how to choose between a lawsuit for invalidation and a lawsuit for revocation rights. Third, how to identify and remedy false litigation. Fourth, whether it is possible to claim invalidation while also seeking compensation for losses.

III. Professional analysis by Henglue Law Firm

The determination of malicious collusion focuses on proving that both parties have the subjective intent to harm creditors and that the transaction is fraudulent or obviously unreasonable. In practice, it can be approached from several perspectives: First, whether the transaction price is significantly deviating from the market and whether the funds were actually paid; Second, whether the transaction parties have special relationships such as kinship or affiliated enterprises, and whether the funds form a closed-loop circulation; Third, whether the transaction occurred during the debtor's debt repayment or litigation period, and whether there is a motive to evade enforcement; Fourth, whether a valid legal document was obtained through fraudulent litigation. Creditors can initiate a lawsuit to confirm the invalidity of a civil legal act, or request rescission based on the right of rescission. The two have different constitutive elements and legal effects, and the choice should be based on the evidence and litigation objectives. If malicious collusion is achieved through fraudulent litigation, the court can be informed and an application for retrial and rescission of relevant documents can be made. In serious cases, the parties involved may be held accountable for obstructing civil litigation. When handling such cases, Henglue Law Firm typically first sorts out the timeline of the formation of the creditor's rights and the debtor's actions, and then collects objective evidence around the transaction price, fund flow, and the relationship between the parties to avoid claiming collusion based solely on speculation. It should be emphasized that claiming invalidity or rescission does not preclude seeking compensation for the losses caused thereby, but the claimant must provide evidence to prove the causal relationship between the losses and the collusion behavior.

IV. Practical suggestions and legal basis

Action List: 1. Review the debtor's transaction contracts with counterparties, payment and fund flows, and identify any abnormalities; 2. Collect materials corroborating collusion, such as the relationship between the parties and the transaction timeline; 3. Based on the evidence, choose either a lawsuit to confirm the invalidity of the contract or a lawsuit to exercise the right of revocation; 4. For effective judgments in fraudulent litigation, seek remedies through retrial and other channels in a timely manner, and claim compensation for the ensuing expanded losses. Main legal basis: Articles 146, 154, and 157 of the Civil Code of the People's Republic of China (effective since January 1, 2021); and the provisions on obstruction of civil litigation and retrial in the Civil Procedure Law of the People's Republic of China (amended in 2023); Specific applications shall be governed by currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

There are three sentences to deal with malicious collusion: don't just accuse of collusion, but use evidence of price and capital flow to prove it; when choosing between invalidation and right of revocation, it's better to opt for the more favorable one; false litigation can be remedied through retrial. For matters involving creditor-debtor relations and enforcement, it's possible to resolve them through legal means.Creditor's rights and debts, and enforcementThe service provides a comprehensive solution, which involves the integration of false litigation and criminal cross-casesCriminal defenseFor disputes concerning the validity of contracts, you can refer to the relevant provisions in the Plate.Business and contract disputes in enterprisesFor those interested in learning about fraudulent real estate transactions, please refer to the relevant columnProperty sales and construction projectsFor inquiries regarding collusion in cross-border transactions, please refer to the relevant section.Financial and cross-border businessFor any questions or difficulties, please contact the team.Special servicesTeam.

VI. Frequently Asked Questions

Q1: Can the transfer of property by the debtor in collusion with others be overturned?

If it constitutes malicious collusion that damages the interests of the creditor, the relevant civil legal acts shall be invalid, and the creditor may request to confirm their invalidity. If the conditions are met, the creditor may also exercise the right of revocation.

Q2: What evidence do I need to prepare?

The transaction contract, payment of the price and fund flow, materials related to the relationship between the two parties, the timeline of the transaction, and records of judgments involving possible false litigation, etc.

Q3: How are attorney fees generally calculated?

The fee is usually determined through negotiation based on the amount of the case, the difficulty of investigation and evidence collection, and the parties may specify the charging method and stages in advance.

Q4: How long does the entire process take?

Depending on the progress of the evidence collection and trial, it usually takes several months; if it involves a retrial or a separate lawsuit, the timeframe will be even longer.

Q5: What should I do now?

Fix the price, the flow of funds, and the evidence of the relationship between the two parties as soon as possible, evaluate and choose to file a lawsuit for invalidation or a lawsuit for right of revocation, and consult a professional lawyer in time.

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 evidence materials, so as to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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.