[Direct answer]The core condition for applying for property preservation is the existence of circumstances that may make the judgment difficult to enforce or cause other damages to the parties due to the actions of one party or other reasons. Typically, this is manifested as the debtor having signs of transferring or concealing property or a deteriorating business situation. According to the provisions of the Civil Procedure Law of the People's Republic of China on preservation, interested parties may apply for pre-litigation preservation before initiating litigation or applying for arbitration, and the court generally requires the provision of a guarantee; they may also apply for in-litigation preservation during the litigation process. Applicants should provide the court with clear clues to the property, such as bank accounts, real estate, vehicles, equity, etc., and submit preliminary evidence to prove the existence of the creditor's rights. When handling private lending cases in Beijing, timely preservation often determines whether the applicant can actually recover the money after winning the lawsuit, so it is recommended to apply for it together with the lawsuit.

1. Problem background and typical scenarios

There are typically three scenarios: First, after the loan maturity, the other party starts transferring property at a low price, changing equity ownership, or withdrawing large amounts of cash, which are signs of transferring assets; Second, if the debtor is a company, there may be production shutdowns, unpaid wages, or multiple lawsuits, indicating a significant decline in its repayment ability; Third, if the two parties still have dealings but the other party repeatedly delays payments, there is a concern that the assets may be quickly disposed of after litigation. In these situations, if no timely preservation measures are taken, even if a judgment in favor of the plaintiff is obtained, there may still be no assets available for enforcement. It is advisable to first understand the specific circumstances of the case.Creditor's rights and debts, and enforcementThe overall processing path of it.

Based on the general circumstances of similar cases, it is necessary to pay attention to the guarantee method, the guarantee period, and the statute of limitations, in order to prevent the loss of substantive rights due to the dormancy of rights. It is usually more effective to fix evidence and clarify claims as early as possible than to take remedial measures afterwards.

II. Key points of contention

The disputes and difficulties focus on four points: Firstly, whether there is a necessity for preservation, which requires preliminary evidence to indicate the existence of a risk of difficulty in enforcement; Secondly, the method of providing guarantees, where pre-litigation preservation generally requires the provision of guarantees, and the court may order the provision of guarantees during litigation; Thirdly, the clarity of property clues, where providing only vague information is usually difficult to gain support; Fourthly, the liability for preservation errors, where the applicant may need to compensate the respondent for losses if they lose the case or make a mistake in the application. In addition, preservation measures are subject to time limits, and if the deadline is not met, the applicant must apply for renewal in a timely manner, otherwise the preservation measures may become invalid.

The essence of such disagreements lies in making the best use of property preservation and enforcement measures to prepare for the future execution of the judgment at the litigation stage. Fixing evidence and clarifying claims early on is usually more effective than taking remedial measures afterwards.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm once represented a civil loan dispute and secured the creditor's rights. The plaintiff, Liu * and the defendant, Li * were friends. Since 2022, Li * borrowed money from Liu * multiple times on the grounds of opening a pet store and paying rent. Liu * lent a total of 662,000 yuan to Li * through bank transfers, Alipay, and WeChat. On November 3, 2024, the two parties signed a loan agreement, stipulating that Li * would repay all the money by January 1, 2025, and voluntarily bear the litigation fees, attorney's fees, transportation fees, and preservation guarantee fees if the repayment was overdue. After the due date, Li * explicitly stated that he was unable to repay the loan. After taking on the case, Attorney Tian Jiaoyan comprehensively sorted out the bank, Alipay, and WeChat transfer records and the loan agreement, and checked them item by item to confirm that the loan relationship was legal and valid. He pointed out that Li *'s default constituted a breach of contract and should bear the principal and overdue interest. Considering the long enforcement period and difficulty in finding property clues after the judgment, the lawyer evaluated the case and suggested prioritizing mediation. After communicating with Liu *, they agreed to reduce the amount and extend the deadline appropriately, but insisted on setting strict breach of contract clauses. Under the court's supervision, the two parties reached a mediation agreement: Li * would repay the loan in two installments, and if he failed to make full repayment on time, Liu * would have the right to require him to immediately pay the remaining principal and attorney's fees of 712,000 yuan according to the original loan agreement. The court issued a "Civil Mediation Agreement" to confirm this. This case was handled by Beijing Henglue Law Firm.Tian JiayanThe attorney (practice certificate number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action list: First, sort out the clues of property as soon as possible, including bank accounts, real estate, vehicles, equity and accounts receivable; Second, prepare preliminary evidence to prove the authenticity of the creditor's rights and the fact that they have not been repaid on time; Third, choose pre-litigation preservation or in-litigation preservation according to the situation, and provide guarantees or letters of guarantee as required; Fourth, pay attention to the preservation period and apply for renewal in time before it expires; Fifth, if the other party provides guarantees and applies for the lifting of preservation, they should evaluate and raise objections in time. For the disposal and relief in the execution stage, you can refer to the relevant provisions.Creditor's rights and debts, and enforcementFor cases involving the verification of property clues such as real estate, you can learn more about it.Property transactions and construction projectsLegal basis: The provisions of the Civil Procedure Law of the People's Republic of China on pre-litigation preservation, preservation during litigation, and guarantees, as well as the provisions of the Civil Code of the People's Republic of China on loan contracts and breach of contract liability (effective from January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, preservation of assets lies in timeliness. Action should be taken immediately upon detecting signs of property transfer, as delay may lead to the disposal of assets. Secondly, the more specific the clues to the assets are, the more beneficial they will be. Relying solely on the account name is usually not enough to support preservation. Thirdly, there is a risk of compensation for errors in applying for preservation. It should be based on true creditor's rights and reasonable judgment to avoid abuse. Fourthly, preservation is not a one-time solution. It is necessary to pay attention to the time limit and renew it in time. It can be done throughCreditor's rights and debts, and enforcementAfter understanding the follow-up execution arrangements of the column, fifthly, the execution process should be promptly connected after the lifting of preservation or the disposal of property; sixthly, attention should be paid to the preservation period, and the application for renewal should be made in time before the expiration of the period to avoid the previous efforts being in vain due to procedural omissions.

VI. Frequently Asked Questions

Q1: Is it necessary to provide a guarantee for civil loan preservation?

It is usually required. For pre-litigation preservation, the court generally requires the applicant to provide a guarantee; for preservation during litigation, the court may order the applicant to provide a guarantee, or may not require it based on the circumstances of the case. The forms of guarantee include cash, guarantee letters, etc. The specific requirements shall be subject to the court's acceptance. It is recommended to prepare in advance to avoid delaying the opportunity.

Q2: Can the other party's property be preserved without any clues about it?

It is possible to apply for it, but it's quite difficult. Generally, the court requires providing clear clues to the property, or for the applicant to apply for an inquiry; if there are no clues, the applicant can entrust a lawyer to investigate through legal channels, or apply to the court for an inquiry. The more specific the clues are, the higher the likelihood of successful preservation, and vague information is usually difficult to obtain support for.

Q3: Who will bear the security costs?

The application fee for preservation of property shall be paid in advance by the applicant, and it is generally borne by the losing party in the end. If it is necessary to provide guarantees or letters of guarantee, the relevant expenses are usually borne by the applicant. However, if the loan agreement stipulates that the defaulting party shall bear the cost of safeguarding rights, the applicant may claim the relevant expenses together with the litigation or mediation. The specific provisions shall be subject to the court's judgment and the contract's stipulations.

Q4: Is there a time limit for security protection, and what should I do when it expires?

Yes. Bank deposits freezes, attachments of movable property, and attachments of real estate all have different time limits. Before the expiration of the time limit, you should apply for a renewal, otherwise the preservation measures may automatically become invalid. It is recommended to submit a renewal application to the court in advance before the expiration of the time limit to avoid the property being transferred or disposed of due to omissions.

Q5: Do I need to compensate for applying for preservation of evidence incorrectly?

It may be necessary. If the application for preservation of evidence is incorrect and causes losses to the other party, the applicant shall bear the liability for compensation. Therefore, the application for preservation of evidence should be based on true creditor's rights and reasonable judgment, so as to avoid causing new liability for compensation due to malicious or gross negligence in preservation of evidence. If necessary, the lawyer should first assess the risks.

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 regional differences.

If you are currently 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·Attorney Tian Jiayan·Beijing Henglue 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. In case of disputes, please consult a practicing lawyer in time.