[Direct answer]It can be pursued. If the debtor transfers his/her property to his/her family for free or at a significantly low price to evade enforcement, the creditor has three remedies: First, the creditor may exercise the right of revocation. According to Articles 538 and 539 of the Civil Code of the People's Republic of China (effective from January 1, 2021), if the transfer of property for free or at a significantly low price affects the creditor's rights, the creditor may request the court to revoke the transfer. The right of revocation shall be exercised within one year from the date when the creditor knows the grounds for revocation; Second, in the enforcement process, the creditor may claim that the transfer is invalid or apply for adding or changing the responsible subject. If the property has not been transferred, the creditor may directly apply for seizure; Third, if the circumstances of transferring property to evade enforcement are serious, it may constitute the crime of refusing to enforce judgments and rulings as prescribed in Article 313 of the Criminal Law of the People's Republic of China. The key is to fix the evidence of transfer in time, and the earlier the action is taken, the greater the possibility of recovery. For more details, please refer to the relevant procedures.Creditor's rights and debts, and enforcement casesColumn.

1. Problem background and typical scenarios

These types of problems often arise in several situations: First, when a lawsuit is approaching or a judgment has just taken effect, the debtor suddenly transfers the property to his parents or children's names; Second, when one spouse is in debt and "leaves the house empty-handed", the divorce agreement assigns all the main property to the spouse, and the relevant family property disputes can be referred to for reference.Marriage and family matters, and divorce litigation1. The first method is to transfer vehicles, deposits, and equity to relatives as gifts or at prices far below market value. 2. The second method is to use relatives' accounts to receive and pay funds, creating the illusion that the debtor has no assets. 3. The third method is to transfer assets to relatives before the debt is due, and then transfer them back to the debtor after the debt is paid off, creating the illusion that the assets were never transferred. 4. The fourth method is to borrow relatives' accounts to receive and pay funds, creating the illusion that the debtor has no assets. 5. The fifth method is to only detect the transfer of assets after the debt has been paid off. In cases of similar nature in Beijing, the court conducts a strict review of the time nodes of property changes before and after the debt is formed. If the transfer occurs after the debt is established, the probability of it being revoked or declared invalid is significantly higher.

II. Key points of contention

Focus One: The determination of gratuitous disposition. If gratuitous acts such as donation, waiver of creditor's rights, and release of guarantees affect the realization of creditor's rights, they can be revoked without needing to prove the counterparty's malice. Focus Two: The determination of low-price transfer. If the transfer price is less than 70% of the guidance price or market transaction price at the time of the transaction, it can generally be deemed an obviously unreasonable low price, and the counterparty must have known or should have known of this situation. Focus Three: The impact of kinship on the judgment of "good faith". Low-price transactions between close relatives are usually subject to stricter scrutiny. Focus Four: The time limit for the right of revocation. It shall be exercised within one year from the date when the creditor knows or should have known the grounds for revocation, and shall be extinguished if not exercised within five years from the date of the debtor's act, in accordance with Article 541 of the Civil Code. Focus Five: Whether the division of property in a divorce agreement constitutes a transfer. If the transfer of property after the debt is formed clearly exceeds a reasonable proportion, it may be revoked. Focus Six: The boundaries of criminal responsibility. Those who are capable of executing but refuse to do so and transfer property to make it impossible to enforce the judgment may be prosecuted for refusing to execute the judgment. Specifically, the above interpretations shall be subject to the currently effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Lawyers

Taking the multiple cases handled by our firm as examples, we can observe the judicial tendencies in disputes over property ownership and liable parties. Firstly, in an enforcement reversal case, the court mistakenly added Li Hongmei and Liu Qingqing as the parties subject to enforcement and seized their property in the early stage. After the addition ruling was revoked, Zhang Nan, who had obtained the property, used objections to prevent its return. After attorneys Ma Qiwen and Song Meina took over the case, they argued that the divorce agreement was genuine and effective, and that the house had been registered in 2010 without any malicious transfer. In accordance with Article 244 of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and implemented on January 1, 2024) and relevant provisions on enforcement work, the court ruled that Zhang Nan should return the enforcement funds of 2,057,814.61 yuan and the accrued interest within ten days, demonstrating that the ownership timeline is the cornerstone of adjudicating enforcement disputes. Secondly, in a case of shareholders harming creditors' interests, the company subject to enforcement had no assets. Attorney Yuan Hang verified that the shareholders had not paid their registered capital in full and, by claiming that the capital payment had accelerated maturity, successfully added the shareholders' liability for supplementary compensation within the unpaid capital of 9 million yuan and 1 million yuan, demonstrating the liable parties' in-depth investigation approach. Thirdly, in an enforcement objection lawsuit, Attorney Wang Dong successfully reversed the enforcement applicant's second-instance ruling, showing that buying a house under someone else's name does not preclude enforcement against the property registered under the defendant's name. These cases demonstrate that the core of the battle between transfer and countering transfer lies in the registration time, the chain of evidence for consideration and the true ownership. This case was handled by Beijing Henglue Law Firm.Marcia WenThe lawyer (practice license number: 11101202411865324, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: 1. First, immediately fix and transfer evidence, retrieve real estate registration information, bank transaction records, and vehicle and equity transfer records, and compare them with the time nodes of debt formation. 2. For transfers made without compensation or at low prices, promptly file a lawsuit to exercise the creditor's right of rescission, noting that the one-year exclusionary period applies, and rights will be extinguished if delayed. 3. For transfer contracts involving collusion to harm the creditor's interests, claim the contract's invalidity based on Article 154 of the Civil Code of the People's Republic of China. 4. If the assets remain under the name of the debtor or their relatives, apply to the court for seizure, freezing, and direct disposal. 5. For those who have the ability to enforce but refuse to do so, transfer assets to evade enforcement, and cause the judgment to be unenforceable, report the case to the court and refer it to the public security authorities for prosecution of enforcement refusal. According to Article 313 of the Criminal Law of the People's Republic of China, those who commit serious circumstances will be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or fines. The relevant prosecution standards are specified in the "Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases of Refusing to Enforce Judgments and Arbitral Awards" (effective December 1, 2024). The scope of exercising the right of rescission is limited to the creditor's claim, and the necessary expenses for exercising the right of rescission shall be borne by the debtor, in accordance with Article 540 of the Civil Code. For reference on organizing evidence documents, please refer to the relevant provisions.Special services and other casesA column.

5. Henglu Law Firm's Reminder

Risk Warning: Firstly, the one-year statute of limitations cannot be interrupted. Once clues of transfer are discovered, the litigation should be initiated immediately, otherwise the right to sue will be lost. Secondly, the maximum five-year statute of limitations starts from the date of the act. Although old transfers over many years are not absolutely safe, it is more difficult to provide evidence. Thirdly, after the recovered property is returned to the name of the person subject to enforcement, it still needs to be disposed of through the enforcement process. The withdrawal of litigation and the application for enforcement should be carried out in a coordinated manner. Fourthly, it is not advisable to exert pressure privately or seize property to offset debts. All claims should be made within the legal procedures. It is recommended to entrust a professional lawyer as soon as possible to sort out the transfer timeline and evidence chain, and to consult when necessary.Beijing Henglu Law FirmOn the official website, there is a similar column that evaluates the combination of revocation, invalidation, and accountability measures.

VI. Frequently Asked Questions

Q1: If the debtor transfers the house to his parents, can the enforcement still proceed?

It can be pursued. If the transfer of ownership occurs after the debt is formed and is a gratuitous or obviously low-price transfer, the creditor may initiate a lawsuit for revocation of rights in accordance with Articles 538 and 539 of the Civil Code, and the property will be returned to registration after the revocation. Then, the court will resume the execution and disposition. Even if the transfer of ownership has taken place for many years, the right of revocation can still be exercised within five years from the date of the act. However, the lawsuit must be filed within one year from the date when the creditor knows the grounds for revocation. The earlier the action is taken, the better the chances of success will be.

Q2: Within what timeframe must a creditor exercise their right of revocation?

Double time limits: According to Article 541 of the Civil Code, the right of revocation shall be exercised within one year from the date when the creditor knows or should have known about the grounds for revocation. This is a preclusive period, which shall not be suspended or interrupted for any reason. At the same time, if the right of revocation is not exercised within five years from the date of the debtor's act, the right of revocation shall be extinguished. If you find that the property has been transferred, you should immediately fix the evidence and sue within one year. Don't delay and miss the deadline.

Q3: Can the spouse of the debtor be directly added as a debtor?

It cannot be generalized. There are limited statutory grounds for directly adding a spouse as the debtor in the execution process. Usually, after confirming the debt as a joint debt of the couple through litigation, the creditor can claim to settle the debt with the spouse's share of the joint property. If, after the debt is formed, the two parties transfer the property to one party's name to evade debts through a divorce agreement, the creditor can exercise the right of revocation against this division act. The specific approach should be evaluated by a lawyer based on the nature of the debt and the registration status of the property.

Q4: What evidence do I need to prepare to sue to revoke a property transfer?

The core evidence includes: the judgment, mediation agreement, or promissory note contract proving the existence of the creditor's rights; the documents and transfer records proving the time of the debt's formation; the original ownership registration information and the time of the change registration of the transferred property; the transfer consideration certificate, proving that it is free of charge or significantly lower than the market price; the proof of the parties' kinship; and the other party's source of living and the status of the property under his/her name. The chain of evidence should be able to present the timeline of "debt first, transfer later, and no consideration".

Q5: Does transferring property constitute a crime?

Possibly. If a person has the ability to enforce the judgments or rulings of the people's court but refuses to do so, and hides or transfers property to make the judgments or rulings impossible to enforce, they will be guilty of refusing to enforce judgments or rulings according to Article 313 of the Criminal Law of the People's Republic of China. If the circumstances are serious, they will be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or a fine; if the circumstances are particularly serious, they will be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and be fined. Both the transfer during litigation and the transfer during enforcement can be investigated. If any clues are found, they should be promptly reported to the enforcement court and an application for transfer of the case should be made.

The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit.Legal services for creditor-debtor disputes·Attorney Ma Qianwen·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. If you encounter disputes, please consult a practicing lawyer in time.