[Direct answer]In the Beijing area, it is not mandatory, but it is generally recommended to hire a lawyer. The parties may apply to the people's court for pre-litigation preservation or litigation preservation on their own, but they need to meet the statutory conditions and provide guarantees, specify the scope and clues of the preserved property, and bear the liability for preservation errors. According to the relevant provisions of the Civil Procedure Law of the People's Republic of China (amended in 2023 and implemented on January 1, 2024), if the actions of one party or other reasons may make the judgment difficult to enforce or cause other damages to the other party, the other party may apply for preservation; the interested parties may apply for pre-litigation preservation in an emergency before initiating litigation or applying for arbitration. The value of lawyer's involvement lies in: assessing the necessity and feasibility of preservation; preparing application forms and guarantee schemes that meet the requirements; investigating and verifying property clues to improve the hit rate of investigation and control; following up on the execution of preservation and linking to subsequent litigation and enforcement; and providing advice on the risks of preservation errors. Therefore, whether to hire a lawyer is decided by the parties themselves, but when the property clues are complex, the subject matter is large, or the time is urgent, professional assistance is often more reliable.

I. Problem background and typical scenarios

In cases of creditor-debtor disputes, contract disputes, and infringement cases, the defendant may transfer, conceal, or dispose of assets during litigation, making it difficult to enforce a judgment in favor of the plaintiff. Property preservation is precisely a systemic tool to address this risk. However, in practice, many parties fail to successfully secure preservation due to their lack of understanding of the application conditions and guarantee requirements. Some only provide vague property information that the court cannot verify; some fail to sue within the statutory time limit, resulting in the lifting of pre-litigation preservation; and some bear liability for damages caused to the other party due to preservation errors. When handling such cases in the Beijing area, the court will review the necessity and urgency of preservation, whether the guarantee is sufficient, and whether the property clues are clear, before deciding whether to adopt preservation measures. Understanding the conditions and operational key points of preservation can help parties protect their own rights and interests in a timely and effective manner.

II. Key points of dispute

First, the application conditions and differences between pre-litigation preservation and litigation preservation. Second, the methods of guarantee and the required ratios. Third, the provision of property clues and the scope of the court's investigation and control. Fourth, the statutory time limit for suing after pre-litigation preservation. Fifth, the liability for compensation for preservation errors and risk control.

III. Professional analysis by Henglue Lawyers

Henglue Lawyers believe that the effectiveness of property preservation depends on three factors: "timing, clues, and guarantees". In terms of timing, the earlier the application is made, the better it is to prevent the transfer of property. For debtors with signs of transfer, pre-litigation preservation is often more effective. In terms of clues, the court usually takes seizure, attachment, and freezing measures based on the clues provided by the applicant. Therefore, the more specific the clues such as bank card numbers, real estate information, vehicle information, and equity information are, the higher the hit rate of the investigation and control will be. In terms of guarantees, the court generally requires the applicant to provide guarantees, which include cash, guarantees, or property guarantees. The proportion and form of the guarantees are determined by the court's requirements. Based on the experience of our team in handling creditor-debtor and enforcement cases, common reasons for failure include: failing to provide effective clues at the time of application, the guarantee plan not being accepted, failing to sue within the statutory time limit after pre-litigation preservation, resulting in the lifting of the preservation, and the preservation scope exceeding the requested amount or preservation errors leading to compensation. Therefore, it is recommended that lawyers evaluate the necessity and risks before preservation, investigate clues and design guarantee plans, and timely connect with litigation and enforcement after preservation to form a complete chain of "preservation - litigation - enforcement". Specific conditions and operations shall be subject to the current effective laws and regulations and the requirements of the court.

IV. Practical suggestions and legal basis

Action list: First, assess whether there is a risk of property being transferred and determine whether preservation is necessary; Second, collect and verify property clues, such as account information, real estate, vehicles, and equity information; Third, prepare preservation applications and guarantee plans, and provide guarantees as required by the court; Fourth, if it is a pre-litigation preservation, initiate litigation or apply for arbitration within the statutory time limit to avoid the preservation being lifted; Fifth, promptly advance litigation and enforcement after preservation to ensure that the seized property is disposed of. For cases involving corporate commercial matters and creditor-debtor disputes, you can refer to the relevant provisions.Business and contract disputes in enterprisesAndCreditor's rights and debts, and enforcementLegal basis: The provisions on pre-litigation preservation and litigation preservation, guarantees and release in the Civil Procedure Law of the People's Republic of China (amended in 2023 and implemented on January 1, 2024), and the relevant provisions on creditor protection in the Civil Code of the People's Republic of China (implemented on January 1, 2021). The specific application shall be subject to the currently effective laws and regulations and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, it's important to take preservation measures as early as possible and take immediate action upon detecting signs of property transfer. Secondly, the more specific the clues to the property are, the higher the success rate of investigation and control will be. Thirdly, guarantee is a necessary condition for preservation, and a plan should be designed in advance. Fourthly, there may be liability for compensation in the event of preservation errors, so a careful assessment should be conducted before applying for preservation. For cases involving corporate commercial matters and creditor-debtor disputes, the parties concerned may seek assistance through legal means.Business and contract disputes in enterprisesFor a comprehensive solution to the service, please refer to the section on preservation and enforcement.Creditor's rights and debts, and enforcement, which involves the assets and equity of the enterprise, can be combinedIntellectual property and corporate legal advisorsYou can consult us regarding matters involving guarantees and financingFinancial and cross-border affairs.

VI. Frequently Asked Questions

Q1: Do I need to hire a lawyer to apply for property preservation?

It's not mandatory, but it's usually recommended to entrust a lawyer to handle it. The party concerned can apply on their own, but they need to provide guarantees, clarify the property clues, and bear the risk of preservation errors. Lawyers can assist in assessing the necessity, designing guarantee schemes, investigating property clues, and linking litigation and enforcement, thereby improving the success rate and safety of preservation.

Q2: What is the difference between pre-litigation preservation and litigation preservation?

Pre-litigation preservation applies to situations where the circumstances are urgent and failure to immediately preserve the legitimate rights and interests will cause irreparable damage. The applicant must file a lawsuit or apply for arbitration within the statutory time limit after the court takes preservation measures, otherwise the preservation will be lifted; litigation preservation is proposed during the litigation process and the applicable conditions are relatively lenient.

Q3: Is it necessary to provide a guarantee for the security service?

It is usually required. The people's court may order the applicant to provide a guarantee, which may take the form of cash, a bank guarantee, an insurance guarantee, or property guarantees, etc. The specific proportion and form shall be determined according to the requirements of the court. If the applicant fails to provide the guarantee as required, the court may reject the application for preservation of evidence.

Q4: What are the consequences of a security breach?

If there are errors in the application, the applicant shall compensate the respondent for the losses suffered due to the preservation. Therefore, the application for preservation should be based on a genuine creditor's right and reasonable necessity, so as to avoid excessive preservation or preservation that is obviously lacking in basis. Whether there are errors and the scope of compensation shall be determined by the court based on the actual circumstances.

Q5: How to provide clues to the location of the property?

It can provide the other party's bank account information, real estate and land use rights information, vehicle information, company equity and foreign investment information, and clues to accounts receivable. The more specific the clues are, the better. If necessary, you can apply to the court to search for the relevant evidence through the online inquiry and control system, or apply for an investigation order to obtain the relevant evidence in the litigation process.

The above answer is based on the judicial practice in Beijing. The adjudicative standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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, to avoid missing the statutory time limits.Corporate commercial legal services·Beijing Henglue Law Firm

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