[Direct answer]In the Beijing area, you can apply for property preservation before suing or during the litigation process. After providing a guarantee, you can request the court to seize or freeze the bank deposits, Alipay, WeChat, or equivalent assets under the other party's name to prevent them from transferring assets. Pre-litigation preservation should be initiated within the statutory time limit after the court takes preservation measures; if the preservation application is erroneous, the applicant shall compensate the respondent for the losses suffered thereby. The preservation guarantee fees and preservation fees incurred for safeguarding rights and interests may be borne by the losing party in accordance with the relevant provisions of the Civil Procedure Law of the People's Republic of China and the judicial interpretation. It is recommended to first go through the legal procedures.Legal services for creditor-debtor relations and enforcement casesEvaluate the property clues and the necessity of preservation.

I. Problem Background and Typical Scenarios

Suppliers being owed for goods, lenders worried about borrowers transferring assets, and contractual counterparties suddenly going missing are common scenarios for applying for property preservation. Parties often ask, "Can we seize the assets before suing?", "How much guarantee is required for freezing the account?", and "What should I do if I make a mistake during the preservation process?". The essence of preservation is to use judicial coercive power to fix the liable assets in advance, laying the foundation for subsequent enforcement, and often putting pressure on the other party and facilitating a settlement. Such operations are closely related to the litigation process.Business and contract dispute services for enterprisesThe collection of arrears in China is closely coordinated with other aspects of financial management.

II. Key points of contention

The disputes over preservation of evidence in cases mainly focus on the following aspects: First, the amount and form of the guarantee. Applicants usually need to provide guarantees equivalent to the amount of the preservation request, which can be in the form of insurance company guarantees, cash, or physical guarantees; Second, the appropriateness of the scope of preservation. Seizure and freezing should be limited to the scope of the litigation request or the property related to the case. Excessive preservation is easily subject to objections; Third, compensation for preservation errors. If the applicant loses the case or the subject of preservation is wrong, the applicant shall compensate the respondent for the losses caused by the preservation; Fourth, the connection between preservation and jurisdiction and enforcement. The location of the property and the level of the court affect the efficiency of the handling. To clarify these points, you can refer to the following sources for further information:Creditor-debtor relations and enforcement case servicesThe practical guidelines.

III. Professional analysis by Henglue Law Firm

Take a dispute over payment for a sales contract handled by Henglue Law Firm as an example: The supplier provided the construction company with goods for installation, but the other party defaulted on the payment for the materials and issued a promissory note stamped with the company's official seal. After only partial repayment, the supplier's attempts to recover the full amount failed. After accepting the client's mandate, the attorney immediately applied for pre-litigation property preservation, sealing and freezing the other party's bank deposits or equivalent assets worth hundreds of thousands of yuan. At the same time, the attorney systematically organized evidence such as the promissory note, bank transfers, collection letters, mailing information, audio recordings, and invoices for preservation guarantees, forming a complete chain of evidence. After trial, the court supported the plaintiff's claims, ordering the other party to pay the purchase price, the preservation guarantee fees and expenses incurred in protecting the rights, and to bear the case acceptance fees. This case shows that preservation is not only a means of applying pressure, but also a crucial step in transforming a "successful judgment" into "actual recovery of funds". The relevant enforcement procedures can be relied upon for follow-up actions.Beijing Henglu Law FirmThe implementation team is making progress.

IV. Practical suggestions and legal basis

In terms of legal basis: Articles 103 to 105 of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and implemented on January 1, 2024) establish a preservation system, stipulating that if a party's actions may make the judgment difficult to enforce, the other party may apply for preservation; the applicant shall provide a guarantee, and the application will be rejected if no guarantee is provided; if the application is erroneous, the applicant shall compensate the losses of the respondent; Article 104 regulates pre-litigation preservation and the time limit for filing a lawsuit. The "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Property Preservation Cases by People's Courts" (adopted on October 17, 2016 and amended on December 23, 2020) further clarify the amount of the guarantee, rules on online verification and renewal of preservation. Practical suggestions: Before applying, try to sort out the other party's account, real estate, and vehicle clues as much as possible; prepare guarantee materials and a list of property clues; after pre-litigation preservation, be sure to file a lawsuit on time; after winning the lawsuit, promptly convert the preservation into enforcement seizure. For more procedures, please refer toSpecial services and other case-related services.

5. Henglu Law Firm's Advice

Property preservation is the preliminary defense line for the realization of creditor's rights, and its core value lies in transforming uncertain performance ability into definite liable property. It is recommended that parties consult lawyers as soon as possible when they find that the other party has signs of evading or transferring assets to avoid missing the window of seizure; at the same time, they should recognize that property preservation is not the same as recovering the debt, and they should plan the litigation and enforcement paths simultaneously.

This case is handled by Beijing Henglu Law FirmTian JiayanThe lawyer (practice license number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acted on behalf of the client, and by combining pre-litigation preservation with a complete chain of evidence, helped the creditor successfully recover the payment and transfer the costs to the debtor.

VI. Frequently Asked Questions

Q1: Can I directly apply to freeze the other party's account before filing a lawsuit?

Yes. If an interested party, due to an emergency situation, fails to apply for preservation immediately, which will cause irreparable damage to their legitimate rights and interests, they may apply to the court where the property to be preserved is located, the defendant's residence, or the court with jurisdiction over the case to take preservation measures before initiating litigation, namely pre-litigation property preservation. After accepting the application, the court shall make a ruling within the statutory time limit. The ruling to take preservation measures shall be immediately executed. However, the applicant for pre-litigation preservation shall initiate litigation within the statutory time limit after the court takes preservation measures. If the applicant fails to initiate litigation within the time limit, the court shall lift the preservation. Therefore, pre-litigation freezing is suitable for emergency situations where the evidence is clear and the other party has the risk of transferring assets.

Q2: Is it necessary to provide a guarantee when applying for property preservation, and who pays the guarantee fee?

In principle, a guarantee is required. If the court orders the applicant to provide a guarantee, the application will be rejected if the guarantee is not provided; the amount of the guarantee should generally be equivalent to the amount of the request for preservation. In practice, many courts use insurance companies to issue litigation preservation liability insurance guarantees to replace cash guarantees, resulting in preservation guarantee fees. If these fees are reasonable and necessary expenses for protecting rights and there are contractual provisions or court support, they can be borne by the losing party. For example, in a case of a dispute over payment, the court ruled that the defendant should bear the preservation guarantee fees and preservation costs incurred by the plaintiff, but whether this can be supported still depends on the specific provisions of the case and the court's ruling.

Q3: How long can a property preservation freeze typically last, and what should I do when it expires?

There are legal time limits for freezing bank deposits, and if the applicant needs to continue the preservation after the expiration of the time limit, they should apply to the court for renewal of the preservation before the expiration of the time limit. If the application is not made within the time limit, the preservation measures will be lifted. There are also different time limits for the seizure and detention of other property such as movable property and real estate, and the renewal of the seizure also requires proactive application. In practice, many creditors have difficulties in recovering their funds afterwards, precisely because they overlooked the renewal of the preservation deadline, resulting in the release of the assets. It is recommended to establish a time limit ledger, and lawyers should remind and handle the renewal procedures before the expiration of the time limit to avoid "freezing and releasing" again, giving the other party a window for transferring assets.

Q4: After the other party's account is frozen, will the money be directly transferred to me?

It won't be automatically transferred. Freezing the account only restricts the other party from withdrawing or transferring funds, and the funds will still remain in their account. To recover the money, it is necessary to first confirm the creditor's rights through litigation or arbitration, then enter the enforcement process, and have the court legally deduct and return the funds. If the two parties reach a mediation or settlement after the preservation, they should also obtain a mediation agreement from the court or cooperate with the applicant for enforcement to lift the freeze, so as to avoid leaving execution risks due to private agreements. In other words, preservation ensures that the assets cannot escape, but the recovery of the money still depends on subsequent judgments and enforcement. The two should be planned together, and it cannot be assumed that freezing the account is the same as getting the money.

Q5: After applying for preservation of evidence, if the other party provides a guarantee and requests the unfreezing of funds, will the court agree to this?

I might agree. If the person subject to the preservation measure provides sufficient and effective guarantees and requests to lift the preservation measure, the court may grant permission, which is a legal remedy aimed at balancing the necessity of preservation with the normal operation or life of the person subject to the preservation measure. However, whether the guarantees are "sufficient and effective" will be reviewed by the court, which typically requires that the value of the guaranteed assets be equivalent and easy to enforce, such as cash, bank guarantees, or equivalent full-value physical assets. If the applicant believes that lifting the preservation measure will harm their own interests, they may raise objections and explain the necessity of continuing the preservation measure. Whether to agree to lift the freeze is at the court's discretion, and the key factor is whether the guarantees can cover the creditor's risk.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

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