[Direct answer]Yes. After the judgment takes effect, if the other party transfers the property to evade enforcement, the creditor may file a lawsuit for the creditor's right of rescission in accordance with Articles 538 and 539 of the Civil Code of the People's Republic of China, and request the rescission of such acts as transferring the property without compensation, transferring the property at a clearly unreasonable low price, or maliciously extending the due date for the performance of the debt; the rescinded acts shall not be legally binding from the beginning, and the property shall return to the scope of debt repayment, so that the enforcement can be resumed. Note two time limits: the right of rescission shall be exercised within one year from the date when the creditor knows or should know the grounds for rescission, and the right of rescission shall be extinguished if it is not exercised within five years from the date when the debtor's act occurs (Article 541). At the same time, the creditor may provide the enforcement court with clues to the debtor's property. If the transfer of property is serious, it may constitute the crime of refusing to enforce the judgment or ruling. You can consult for more information.Legal services for creditor-debtor disputes and enforcement cases.

I. Problem Background and Typical Scenarios

Winning a lawsuit simply means obtaining a judgment, but it's not a real victory until the money is actually received. In enforcement practice, debtors employ a variety of tactics to transfer their assets: transferring property and vehicles to their parents or children before and after the judgment; selling equity and property to relatives at prices significantly below market value; creating fictitious loan relationships with relatives to "offset debts with property"; withdrawing deposits and transferring them to others' names, or simply going missing. These actions can either slow down the enforcement process or render the judgment a worthless piece of paper. Fortunately, the law provides creditors with multiple tools such as the right of rescission, enforcement investigation, and accountability for refusing enforcement. The key lies in identifying transfer clues in a timely manner and taking decisive action within the statutory time limit, rather than waiting until the enforcement process ends only to discover that the assets have already changed hands.

II. Key points of dispute

  • Understanding the requirements for revocation: The threshold for revoking a gratuitous disposition is relatively low; for a transfer at a low price, it is necessary to prove that the price is obviously unreasonable and that the transferee knows or should have known about the malice. Transactions between relatives and friends can be determined comprehensively based on the relationship and the consideration.
  • Calculation of time limits: The one-year exclusionary period starts from the date when the party knows or should have known about the grounds for revocation, and the five-year period starts from the date when the act occurs. Knowing the matter late does not mean that it can be delayed indefinitely. If the right is not exercised within the time limit, it will be extinguished.
  • The connection between revocation and enforcement: After revocation, if the property is returned to the debtor and then disposed of, or directly used to pay off the debt, how to coordinate the revocation right litigation with the enforcement investigation and control, and the property preservation procedures will directly affect the efficiency of recovering the debt.

III. Professional analysis by Henglue Lawyers

The practical observation of Henglue Lawyers in handling enforcement cases is that transferring property cases rely 30% on legal provisions and 70% on clues and timing. When the court reviews cases of right of revocation, it focuses on three sets of facts: first, the transaction consideration, the deviation of the transfer price from the market price, which can be judged by the evaluation report and the comparison with the transaction price in the same community. Transfers at a significantly low price are easily recognized as unreasonable; second, the flow of funds, whether the transfer payment is truly made and who the funds ultimately go to. False transactions often stop at the contract text and even have no payment records; third, the relationship between the parties. If the transferee and the debtor are close relatives or have other interests, it is easier to recognize their malicious intent. Common disputes also include transferring major assets to one party through divorce agreements, leaving debts to the party subject to enforcement, or circumventing the value of property disposal through long-term leases and establishing residence rights. These arrangements can also become targets of attacks in the revocation or enforcement process. In practice, we should also combine the right of revocation litigation with enforcement measures: apply to the enforcement court to inquire about bank transactions, real estate and vehicle registrations, and after entrusting a lawyer, apply for an investigation order to retrieve transaction files; if the debtor transfers property after the judgment takes effect and causes the judgment to be unenforceable, we can simultaneously collect evidence of refusing to enforce and report it to the public security organ. It is recommended that creditors start investigating property changes immediately after the judgment takes effect and apply for property preservation immediately if any abnormalities are found; for cases involving the review of the validity of the transfer contract, it can be combined with other evidence to prove the debtor's malicious intent. 恒略律师在办理执行案件中的实务观察是：转移财产案件三分靠法条，七分靠线索与时间。法院审查撤销权案件时，重点看三组事实：一是交易对价，转让价格与市场价的偏离程度，通过评估报告、同小区成交价对比判断，明显偏低的转让容易被认定不合理；二是资金流向，转让款是否真实支付、款项最终回到谁手里，虚假交易往往止步于合同文本甚至没有付款记录；三是双方关系，受让人与债务人系近亲属或存在其他利害关系的，明知恶意更容易认定。常见争议形态还包括通过离婚协议把主要财产分给一方、把债务留给被执行人一方，或者以长期租赁、设立居住权等方式架空财产处置价值，这些安排同样可以成为撤销或执行程序中的攻击点。实务中还应把撤销权诉讼与执行手段并用：向执行法院申请查询银行流水、不动产与车辆登记，委托律师后可申请调查令调取交易档案；发现判决生效后转移财产且致使判决无法执行的，可同步收集拒执线索向公安机关控告。建议债权人在判决生效后即着手排查财产变动，发现异常立即申请财产保全；涉及转让合同效力审查的，可结合其他证据证明债务人的恶意意图。Business and contract dispute services for enterprisesAnalysis.

IV. Practical suggestions and legal basis

At the legal basis level: Article 538 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that if the debtor disposes of property rights without compensation by waiving claims, transferring property without compensation, or maliciously extending the performance period of due claims, thereby affecting the creditor's ability to realize their claims, the creditor may request the people's court to revoke such actions; Article 539 stipulates that if the debtor transfers property at a clearly unreasonably low price and the transferee knows or should have known of this situation, the creditor may request revocation; Article 540 stipulates that the scope of the right of revocation is limited to the creditor's claims, and the necessary expenses for exercising the right of revocation shall be borne by the debtor; Article 541 stipulates that the right of revocation shall be exercised within one year from the date when the creditor knows or should have known of the grounds for revocation, and the right of revocation shall be extinguished if it is not exercised within five years from the date of the act; Article 542 stipulates that the revoked act shall not be legally binding from the outset. At the practical advice level: Apply for enforcement as soon as possible after the judgment takes effect and sort out the debtor's property status; preserve original evidence such as promissory notes, transfer records, and chat logs; if any transfer clues are found, fix the evidence first before taking action; clearly describe the transfer behavior and malicious intent in the lawsuit; and seek legal assistance if enforcement is obstructed.Creditor-debtor relations and enforcement case servicesEvaluate the portfolio solution.

5. Henglu Law Firm's Advice

The right of revocation has a statute of limitations: if it's more than a year after you become aware of the transfer, or more than five years after the transfer took place, even the most conclusive evidence won't be able to reverse the situation. Therefore, when you find that the judgment has become a "worthless promise," your first action shouldn't be to vent your anger and blame others, but to investigate the accounts, properties, and vehicles involved to clarify the timing and path of the transfer. The aforementioned one-year statute of limitations begins from the date you become aware of or should have become aware of the grounds for revocation. When asserting this right, you need to explain and provide evidence regarding "when you became aware of it." If you're currently facing the dilemma of the other party transferring assets or the execution of the judgment being unsuccessful, it's recommended that you take action as soon as possible.Beijing Henglue Law FirmConsult with a lawyer to combine the withdrawal of the lawsuit, property preservation, and the accountability for refusing to enforce the judgment to seize the golden rescue period.

Q1: Must the right of revocation be exercised within one year?

Yes. According to Article 541 of the Civil Code of the People's Republic of China, the right of revocation shall be exercised within one year from the date on which the creditor knows or should have known of the grounds for revocation; if the creditor fails to exercise the right of revocation within five years from the date on which the debtor's act occurred, the right of revocation shall be extinguished. The two time limits are calculated from the date of "knowledge" and "occurrence of the act", respectively. The former is a subjective standard, and the latter is an objective cap. It should be noted that this time limit is a preclusive period and is not subject to the provisions on suspension and interruption of the statute of limitations. Once the time limit has passed, the right will be extinguished. If clues of transfer are found, it is necessary to sue as soon as possible and not to hope for delay and wait-and-see.

Q2: If the other party sells the house to a relative at a low price, can the transaction be revoked?

It's possible to meet two conditions. According to Article 539 of the Civil Code, if the debtor transfers property at a price that is obviously unreasonably low, which affects the creditor's ability to enforce their rights, and the transferee knows or should have known about this situation, the creditor may request the transfer to be revoked. Regarding the price, the creditor may apply for an appraisal or refer to the transaction price in the same area to prove that the transfer price is obviously deviating from the market price. Regarding the malicious intent, the relationship between the debtor and the transferee is a strong piece of evidence. Combined with the fact that the transferee has not actually paid the money and the house is still occupied by the debtor, it can be determined comprehensively. If the revocation is successful, the house will return to the scope of the property used to fulfill the repayment obligation, and the enforcement can be resumed to satisfy your creditor's rights.

Q3: Can I find clues about the other party transferring their assets by myself?

You can try more methods. You can apply to the enforcement court to inquire about the registration information of bank deposits, real estate, vehicles, securities, etc. through the online enforcement and investigation system; after entrusting a lawyer, you can apply for a lawyer's investigation order to retrieve transaction files, bank statements, and real estate registration information; chat records, friend circle updates, and consumption photos collected daily can also be submitted as clues. After finding clues, submit them to the enforcement court in time or use them as evidence in revocation right litigation. It is strictly prohibited to adopt private means such as tracking and intrusion to obtain evidence, as this not only poses personal and legal risks, but also may result in the evidence being disqualified.

Q4: If the transfer action is revoked, can the property be directly transferred to me?

Generally, it cannot be directly offset. The right of revocation restores the debtor's liable property: the revoked act is not legally binding from the outset, and after the property returns to the debtor's name, it is used for repayment through the enforcement process. The scope of exercise is limited to the amount of your claim, and the part exceeding this amount will not be subject to the revocation effect; the necessary expenses such as attorney's fees and litigation fees incurred in exercising the right of revocation may be required to be borne by the debtor in accordance with Article 540 of the Civil Code. Whether the transferee can be added as an executee depends on whether he meets the conditions stipulated in the relevant judicial interpretations on enforcement. It is advisable for lawyers to evaluate the feasibility based on the evidence of the case before taking action.

Q5: If the other party transfers their property, does that constitute a crime?

This may constitute a crime. According to Article 313 of the Criminal Law of the People's Republic of China, if a person has the ability to enforce the judgment or ruling of the people's court but refuses to do so, and the circumstances are serious, he/she shall be guilty of the crime of refusing to enforce the judgment or ruling, and shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or a fine; if the circumstances are particularly serious, the punishment shall be more severe. Hiding or transferring property after the judgment takes effect, resulting in the judgment or ruling being unable to be enforced, is a typical case of refusing to enforce the judgment. In practice, you can first report the case to the enforcement court and submit clues, and then the court will transfer the case to the public security organ. You can also collect evidence and initiate a criminal self-prosecution. Criminal pressure often prompts the other party to perform the obligation voluntarily.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglu Law Firm