[Direct answer]Yes. The Alipay balance and WeChat wallet belong to the debtor's property rights, and the court may, in accordance with the "Civil Procedure Law of the People's Republic of China" (amended on September 1, 2023) and Article 2 of the "Regulations of the Supreme People's Court on the Seizure, Detention, and Freezing of Property in Civil Enforcement of the People's Court" (amended on December 29, 2020), use the online monitoring and control system to inquire into, freeze, and transfer them. In litigation, the debtor may also apply for property preservation. Pre-litigation property preservation shall be sued within 30 days after the court takes measures, otherwise it shall be lifted (Article 104). The freezing shall be limited to the amount of the creditor's claim, and the debtor and his/her dependents' necessary living expenses shall be reserved. If you need to apply for freezing or unfreezing, you can consult for more information.Legal services for creditor-debtor relations and enforcement casesAndBeijing Henglue Law Firm.

1. Problem background and typical scenarios

In the era of electronic payments, a large amount of funds from individuals and enterprises are deposited in Alipay balances, WeChat Wallets, and associated accounts. Accounts being frozen by the judiciary have become a common occurrence in preservation and enforcement procedures. Typical scenarios include: after being sued, accounts are suddenly frozen by property preservation; wages and payments cannot be deposited or withdrawn; after entering the enforcement process, Wallets and balances are directly frozen and deducted by online investigation and control; defendants who run small businesses or live stream operations worry that the freeze will affect their income; after the account is frozen, they find that the amount is significantly higher than the debt; and after repaying the debt, the account is still not unfrozen for a long time. The freeze directly affects basic living and business operations. How to deal with it and how to unfreeze the account are the most concerned issues for defendants.

II. Key points of dispute

  • The scope of investigation and control and the boundaries: Alipay balance and WeChat wallet belong to the debtor's property rights and can be frozen and deducted according to law; shares of money funds such as Yu'ebao, related wealth management and insurance products are also within the scope of online investigation and control; credit lines such as Huabei and Beiyong are not property and are not subject to freezing.
  • Freeze limits and necessary expenses: The amount of the freeze shall be limited to the amount of the creditor's rights determined by the effective legal documents and the execution expenses. Objections may be raised against freezes that are obviously excessive; during the execution, the necessary living expenses of the debtor and the dependents supported by him/her shall be reserved.
  • Unfreezing path and time limit: After the performance is completed or an enforcement settlement is reached, an application may be made to lift the freeze; the freeze itself has a time limit, with bank deposits not exceeding one year and other property rights not exceeding three years. If the freeze is not renewed upon expiration, its effect will be extinguished (Article 487 of the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China, amended on April 10, 2022).

III. Professional analysis by Henglue Lawyers

During the execution of cases, Henglue Lawyers observed that the court can batch-search and freeze the funds of the debtors in major banks and third-party payment platforms through the National Online Search and Control System, which is highly efficient and has a wide coverage. Many debtors find their accounts frozen without any preparation. There are three key points in practice: Firstly, the freeze is usually in a "read-only" state. After the freeze, new funds transferred into the account will also be subject to the freeze. It is not feasible to evade execution by receiving payments into the account. Secondly, for essential living expenses, the debtor can submit a written application to the execution court and explain the family situation, requesting to reserve necessary expenses for himself and the dependents supported by him. In many cases, the court will handle the application on a case-by-case basis. Thirdly, for erroneous freezes, such as the funds of a third party being mistakenly frozen, the amount frozen obviously exceeding the creditor's claim, or the debtor having fulfilled the obligation but not being unfrozen, the debtor can file an objection to the execution act according to law and request correction or lifting of the freeze. For the debtor, actively declaring property and reaching an execution settlement with the applicant are often the fastest ways to obtain unfrozen and resume operations. If the debtor conceals or transfers the frozen or pending execution property, he may face fines, detention, and, in serious cases, the crime of refusing to execute judgments and rulings. 恒略律师在执行案件中观察到，法院通过全国网络查控系统可以批量查询、冻结被执行人在各大银行及第三方支付平台的资金，效率高、覆盖广，很多被执行人在毫无准备的情况下账户即被冻结。实务要点有三：其一，冻结通常呈“只进不出”状态，冻结后新转入的资金同样处于冻结范围，试图用账户收款规避执行并不可行；其二，对生活必需费用，可向执行法院提交书面申请并说明家庭状况，请求为本人及所扶养家属保留必要开支，个案中法院多会酌情处理；其三，对错误冻结，如案外人资金被误冻、冻结金额明显超出债权额、已履行完毕未解冻等，可以依法提出执行行为异议，要求纠正或解除。对被执行人而言，主动申报财产、与申请执行人达成执行和解，往往是换取解冻、恢复经营最快的方式；隐匿、转移已冻结或待执行财产，则可能面临罚款、拘留，情节严重的构成拒不执行判决、裁定罪。

IV. Practical suggestions and legal basis

Legal basis: Article 103 of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023) stipulates that property preservation in litigation, and Article 104 stipulates that interested parties may apply for preservation before suing or arbitrating, but if the applicant fails to sue or apply for arbitration within 30 days after the court takes preservation measures, the court shall lift the preservation; Article 2 of the Supreme People's Court's Provisions on Seizing, Detaining, and Freezing Property in Civil Enforcement (amended on December 29, 2020) stipulates that the people's court may seize, detain, and freeze movable property owned by the debtor, real estate registered in the debtor's name, specific movable property, and other property rights; Article 487 of the Supreme People's Court's Interpretation on the Application of the Civil Procedure Law of the People's Republic of China (amended on April 10, 2022) stipulates that the period for freezing deposits shall not exceed one year, and the period for seizing real estate and freezing other property rights shall not exceed three years, which can be renewed; Article 313 of the Criminal Law of the People's Republic of China (amended on December 29, 2023) stipulates the crime of refusing to enforce judgments and rulings. Practical suggestions: After the account is frozen, first contact the enforcement court to verify the case and the amount of the freeze to avoid blind speculation; if you have the ability to perform, perform or reach a settlement as soon as possible to obtain the release of the freeze; if you believe the freeze is wrong or exceeds the standard, promptly raise an enforcement objection; and do not transfer funds or close accounts to evade enforcement. Case responses can be referred to for reference.Legal services for creditor-debtor disputes and enforcement cases.

5. Henglu Law Firm's Reminder

The signal sent by the freezing of Alipay and WeChat balances is that the dispute has entered the judicial process, and avoiding it will only increase the cost. For debtors, the correct approach is to verify the debt, assess their repayment ability, actively negotiate a solution, and, if necessary, claim essential living expenses and raise objections to excessive amounts according to the procedures; for creditors, they should apply for preservation and online investigation and control in a timely manner to freeze the funds before they are disposed of. Whether applying for a freeze or applying for a thaw, both involve professional procedures and evidence handling, which can be handled through legal means.Beijing Henglue Law FirmObtain a case assessment to avoid missing opportunities due to procedural flaws.

Q1: After WeChat Wallet and Alipay are frozen, can I still receive money normally?

Generally, it cannot be used normally. Judicial freezing usually puts the account in a "only incoming, no outgoing" state: the balance and change cannot be paid or withdrawn externally, and newly transferred funds will also be frozen until the court lifts the freeze or deducts them according to law. This also means that it is meaningless to try to continue using the frozen account to avoid enforcement. If you really need to use some funds for business, medical treatment, etc., you can explain the situation to the enforcement court in writing, apply for partial lifting of the freeze or retention of necessary living expenses, and the court will review and decide. Do not borrow other people's accounts to transfer funds privately.

Q2: If the account is frozen before being charged, is that legal?

It might be legal. The pre-litigation property preservation system allows interested parties to apply to the court for freezing the other party's property before suing when the situation is urgent and failure to immediately preserve the property will cause irreparable damage to their legitimate rights and interests. However, they must provide a guarantee, and the applicant shall file a lawsuit or apply for arbitration within 30 days after the court takes preservation measures, otherwise the court shall lift the preservation (Article 104 of the Civil Procedure Law of the People's Republic of China). After receiving the freezing notice, the applicant can verify the preservation case number, the applicant, and the amount with the court to determine whether it is excessive or incorrect. If necessary, they can raise objections or apply to replace it with other forms of guarantee.

Q3: After the account is frozen and deducted, what should I do if my basic living needs are not guaranteed?

The law requires that during the enforcement process, the necessary living expenses of the debtor and the dependents supported by him/her shall be reserved. A written application can be submitted to the enforcement court, accompanied by materials such as income proof, support and maintenance situation, and medical expenses, to request that the necessary living expenses be reserved monthly or that some funds be unfrozen; the court will handle the matter as appropriate after verifying the authenticity of the materials. If the debtor's salary-related income is frozen, he/she may apply for the monthly payment of basic living expenses; if the only operating account is frozen in its entirety and seriously affects its operation, he/she may also negotiate to pay off the debt in installments in exchange for the unfreezing of some accounts. If the court completely ignores the situation and allows the freeze to continue, the debtor will lose the opportunity to mitigate the impact of the freeze.

Q4: How long will it take for the account to be unblocked after repaying the debt?

After completing the performance, the party concerned shall notify the court immediately and apply for the lifting of the freeze. After the court reviews and confirms it, it will issue a ruling on the lifting of the freeze. Then, the notice of assisting in the enforcement will be served to platforms such as Alipay and WeChat to lift the restrictions, which usually takes several working days. The party concerned may actively follow up with the case handler to accelerate the circulation of the documents. It should be noted that the freeze itself has a time limit: the freeze on bank deposits shall not exceed one year, and the freeze on other property rights shall not exceed three years. If no application for renewal of the freeze is made before the expiration, it will automatically become invalid. If the freeze has not been lifted for a long time, the party concerned may apply to the court for verification. If it is found to be an error, an objection to the enforcement may be raised.

Q5: Is it possible to transfer the balance to a relative's account to avoid being frozen?

No. If the debtor transfers property after the litigation begins, the creditor may apply for the revocation of the transfer or claim additional enforcement. The court may also fine or detain the debtor according to the circumstances; if the debtor transfers or hides property and refuses to execute the judgment after the judgment takes effect, he may be charged with the crime of refusing to execute the judgment and ruling according to Article 313 of the Criminal Law of the People's Republic of China and be held criminally responsible. In practice, online monitoring and control can trace back and check the account transactions, and large-scale and abnormal transfers are easily detected. The correct approach is to actively declare the property, truthfully explain the use of the funds, and strive for a grace period through enforcement settlements, which is far less costly than being subject to compulsory measures.

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 limit.\nLegal services for creditor-debtor disputes·Beijing Henglu Law Firm