[Direct answer]In the Beijing area, if the other party refuses to pay back the money, you can apply for property preservation. According to Article 103 of the Civil Procedure Law of the People's Republic of China (amended in 2023), the people's court may, upon the application of the other party, order the preservation of the other party's property in cases where the judgment may be difficult to enforce or cause other damages to the parties due to the actions of one party or other reasons; if the parties do not apply for it, the people's court may also order the adoption of preservation measures when necessary. The applicant shall provide a guarantee. If the applicant fails to provide a guarantee, the application will be rejected. Therefore, in practice, it is usually necessary to prepare a preservation guarantee, which can be in the form of cash, a bank guarantee, or an insurance company's preservation guarantee.Creditor's rights and debts, and enforcementIn these types of services, security measures are often an effective way to encourage the other party to repay the debt voluntarily.

1. Problem background and typical scenarios

The typical situations requiring preservation include: the other party explicitly stating that they are unable to repay, transferring assets or liquidating the company, frequently changing their residence and contact information, refusing to answer the phone and being uncontactable, as well as signs of large-scale asset disposal. In practice, there is another situation worth noting: if the debt has exceeded the performance deadline and the other party neither makes payments nor responds, the creditor may worry that the assets will be disposed of during the litigation period.Special services and other casesIn this section, organizing the clues to the property is a preparatory work for the application for preservation of property.

II. Key points of dispute

The first focus is whether there is a risk that makes the judgment difficult to enforce. The second focus is whether the scope and amount of the preservation application are appropriate. The third focus is the guarantee method and the guarantee amount. The fourth focus is whether it is necessary to sue within the statutory time limit after pre-litigation preservation. The fifth focus is whether the preservation will be lifted after the respondent provides a guarantee. The sixth focus is whether compensation should be paid for erroneous preservation. The seventh focus is the legality and reliability of the sources of property clues.

III. Professional analysis by Henglue Law Firm

When handling preservation applications, Henglue Law Firm usually prepares three items simultaneously: evidence, clues, and guarantees. Taking a dispute over payment for a sales contract handled by Attorney Tian Jiaoyan of our firm as an example: The plaintiff provided installation services for the defendant, a construction engineering company, but the defendant has long been in arrears with material payments. After consultation, the defendant issued a promissory note confirming the amount of the debt and affixed its official seal. However, the defendant only repaid part of the amount and failed to settle the remaining debt despite repeated attempts. After accepting the client's mandate, the attorney first explained the legal focus and litigation strategy to the client, concluding that the defendant's failure to pay the debt and issuance of the promissory note indicated the existence of a valid sales contract between the two parties, and that the defendant should fulfill its obligations in a timely and comprehensive manner according to the promissory note. To maximize the recovery of the debt, the attorney immediately applied for pre-litigation property preservation, requesting the seizure, freezing, or attachment of the defendant's corresponding amount of bank deposits or equivalent assets. At the same time, the attorney assisted the client in organizing evidence such as the promissory note, bank transfer records, collection letters and mailing information, screenshots of text messages, phone recordings, invoices for preservation guarantees, and enterprise credit reports, forming a complete chain of evidence. The court accepted the attorney's opinion and ordered the defendant to pay the debt within 15 days after the judgment became effective, as well as to bear the preservation guarantee fees and case acceptance fees. This litigation prompted the other party to repay the debt promptly.Business and contract disputes in enterprisesIn this type of case, the linkage between preservation of evidence and preparation of evidence is also crucial. This case was handled by Beijing Henglu Law Firm.Tian JiayanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: First, organize property clues, including bank accounts, real estate, vehicles, company equity, and accounts receivable, ensuring that the sources of these clues are legal; Second, fix risk evidence, such as collection records, statements from the other party admitting their inability to repay, and signs of asset transfer; Third, prepare guarantee plans in advance and confirm their feasibility and cost; Fourth, evaluate the matching relationship between the amount of preservation and the amount of the creditor's claim to avoid excessive preservation; Fifth, after pre-litigation preservation, file a lawsuit within the statutory time limit and promptly submit the preservation ruling to the court; Sixth, if the respondent provides guarantees or applies for reconsideration, participate in the proceedings in a timely manner; Seventh, preservation errors may trigger compensation liability, so careful assessment is necessary. Legal basis: Articles 103 and 104 of the Civil Procedure Law of the People's Republic of China (amended in 2021 and 2023); Provisions on damage compensation in the Civil Code of the People's Republic of China (effective January 1, 2021). For details on property clue investigation, please refer to the relevant provisions.Special services and other casesFor details on the choice of guarantee methods, please refer to the following section.Business and contract disputes in enterprisesThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, the core of preservation of evidence is to provide clues to the property, and it's hard to enforce preservation without clues. Secondly, it's necessary to provide a guarantee. Applications without a guarantee will be rejected. Thirdly, after pre-litigation preservation, it's necessary to sue in time, otherwise it may be lifted. Fourthly, the amount of preservation should be equivalent to the creditor's claim, and excessive preservation carries higher risks. Fifthly, if preservation causes losses, it may be necessary to compensate. Sixthly, it takes time to register the preservation of accounts and real estate, and the earlier the better. Seventhly, preservation often prompts the other party to fulfill their obligations voluntarily, so it's recommended to proceed with it in parallel with negotiations.

VI. Frequently Asked Questions

Q1: What are the requirements for applying for property preservation?

According to Article 103 of the Civil Procedure Law of the People's Republic of China (amended in 2023), it is necessary to have evidence to prove that the judgment may be difficult to enforce or cause other damages due to the other party's actions or other reasons, and at the same time, a guarantee should be provided. In practice, evidence of risks such as the other party's inability to repay, transfer of assets, and unknown whereabouts, as well as specific clues to the property, should be prepared. The guarantee can be in the form of cash, bank guarantees, or insurance company preservation guarantees. A ruling that no guarantee is provided will be rejected.

Q2: How is the amount of the security deposit determined, and can it be increased?

Generally, it should be equivalent to the amount of the creditor's claim and the corresponding expenses, including the principal, interest, penalty, and reasonable legal fees and other expenses for safeguarding rights. Excessive preservation may lead to the respondent claiming compensation for losses, or even bearing liability for compensation in the case of erroneous preservation. Therefore, it is recommended to calculate the creditor's claim and expenses based on the actual situation and provide corresponding evidence to support it, so as to avoid applying for preservation beyond the amount of the creditor's claim. If necessary, you can continue to apply for additional preservation during the enforcement stage.

Q3: If I don't know the other party's assets, can I apply for preservation of evidence?

You can try to apply for it, but whether you can actually control the property depends on the quality of the clues. The court can, on its own initiative, use the online investigation and control system to inquire into the defendant's deposits, vehicles, real estate, etc. However, the seizure of property such as real estate and equity usually requires the applicant to provide clues. It is recommended to collect as much information as possible about the defendant's bank accounts, property addresses, vehicle information, and company information before applying, and to explain the legitimacy of the sources of the clues. The more accurate the clues are, the higher the efficiency of control will be.

Q4: What is the difference between pre-litigation preservation and preservation during litigation?

The main difference lies in whether there is a lawsuit in progress at the time of application. Pre-litigation preservation requires applying to the court where the property is located, the defendant's residence, or the court with jurisdiction over the case, and a lawsuit must be filed within the statutory time limit. Otherwise, the court shall lift the preservation order. In-litigation preservation is decided by the accepting court after the case is accepted, and the requirements for guarantees and risk proof are the same. Pre-litigation preservation is more proactive in terms of time and is suitable for emergency situations where the property is at risk of being transferred.

Q5: What are the consequences of making a mistake in security measures?

The applicant may be liable for compensation. If the application for erroneous preservation causes losses to the respondent, the applicant shall compensate them in accordance with the law, and the respondent may also apply to the court for a review. The amount of compensation is usually limited to the actual losses, so the applicant should have sufficient risk evidence and a reasonable scope of preservation to avoid significantly exceeding the creditor's rights or preserving property unrelated to the debt. In practice, it is recommended that a lawyer assess the risks before applying and retain the corresponding evidence materials.

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

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·Attorney Tian Jiayan·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.