[Direct answer]Yes. If the situation is urgent and failure to apply for preservation immediately will cause irreparable damage to the legitimate rights and interests of the creditor, the creditor may, before initiating litigation or applying for arbitration, apply to the court where the property to be preserved is located, the defendant's residence, or the court with jurisdiction over the case for pre-litigation property preservation, and must provide a guarantee. The court shall make a ruling within 48 hours after accepting the application. Where the court decides to adopt preservation measures, it shall immediately begin to implement them; the applicant shall initiate litigation or apply for arbitration within 30 days after the court adopts preservation measures. If the applicant makes an erroneous application and causes losses to the defendant, the applicant shall compensate for the losses in accordance with the law.

I. Problem Background and Typical Scenarios

The practical value of pre-litigation preservation lies in the time gap: once the debtor realizes that he/she is being sued, he/she often transfers account funds, changes equity or accelerates the disposal of real estate within a few days. Common scenarios include borrowers making concentrated transfers before losing contact in private lending, misappropriation of payment in sales contracts, and sudden disposal of property by one party in inheritance disputes. At this time, suing first and then applying for preservation may have missed the best opportunity. Conversely, applying for a freeze on a third-party account that is not a relative may also result in liability for compensation due to preservation errors.

II. Key points of contention

First, the determination of urgency. It is necessary to explain that failure to preserve the evidence immediately will lead to irreparable damage, and a vague reason may easily prompt the court to require additional explanations. Second, the conditions for guarantee. Cash, physical assets, guarantees, or surety bonds issued by insurance institutions can be used as guarantees, and the amount of the guarantee generally shall not exceed about 30% of the amount requested for preservation. Third, the jurisdiction of the court. The court where the preserved property is located, the defendant's residence, or the court with jurisdiction over the case can all accept the application. Fourth, the 30-day litigation time limit. This is a mandatory time limit unique to pre-litigation preservation, and the preservation will be automatically lifted if it exceeds the time limit. Fifth, the liability for erroneous preservation. The liability for damage caused by property preservation is general tort liability, and the principle of fault liability applies.

III. Professional analysis by Henglue Lawyers

Based on our practical experience in handling preservation and enforcement cases, Beijing courts are stricter in reviewing the urgency of pre-litigation preservation and the adequacy of guarantees. Whether the application is approved often depends on the quality of the materials: the application must specify the specific property clues (the account opening bank and account number, the location and ownership certificate number of the property, the vehicle identification information, and the name and proportion of the enterprise in which the equity is held), rather than a general request to freeze all the other party's assets. The statement of urgency should be supported by objective materials, such as the flow of funds being centralized and transferred, and publicly available information on changes in equity ownership. There are three common pitfalls: first, targeting the wrong object, listing the personal accounts of third parties or shareholders unrelated to the debt as the objects of preservation. Once it is determined to be unfounded, the preservation may be lifted and compensation for losses may be required; second, the amount of preservation significantly exceeds the amount of the creditor's claim; third, failing to sue within 30 days after preservation results in the lifting of the preservation order, or even triggering claims for compensation due to repeated applications.

IV. Practical suggestions and legal basis

According to the provisions on pre-litigation preservation in the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022), in urgent situations, parties may apply for preservation before filing a lawsuit or applying for arbitration. The court shall make a ruling within 48 hours after accepting the application, and the ruling on preservation shall be immediately executed. The applicant shall file a lawsuit or apply for arbitration within 30 days after taking preservation measures. If the application is erroneous, the applicant shall compensate the losses of the respondent. The "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Property Preservation Cases by People's Courts" (Interpretation of the Supreme People's Court No. 22, 2016, amended in 2020) provides detailed rules on the amount of guarantee and insurance agency guarantees. Suggestions: Before filing a lawsuit, first conduct an investigation of property clues and list specific enforceable targets; prepare sufficient reasons for urgency and guarantee plans; strictly file a lawsuit within 30 days and retain the receipt of case filing.

5. Henglu Law Firm's Reminder

There are clear restrictions on the duration of preservation: freezing of bank deposits and other funds is generally for one year, seizure and attachment of movable property is generally for two years, and seizure of immovable property and freezing of other property rights is generally for three years. Before the expiration of the time limit, it is necessary to apply for renewal of preservation in time, otherwise the preservation will automatically expire. In long-term litigation, it is very easy to fall into a passive situation where you win the lawsuit but your property is transferred. It should also be noted that the order of seizure is of great importance when it involves waiting in line for seizure, so it is necessary to apply as early as possible. If the respondent provides equivalent guarantees, the court may lift the preservation of some property, at which time it is necessary to promote the disposition of the guaranteed property. RelatedContract disputeThe evidence and preservation materials can be organized together. For further handling, please refer to the follow-up instructions.Creditor's rights and debts, and enforcementPlate; for cases involving complex property ownership, it can be resolved throughSpecialised legal servicesCoordinate and plan things in a comprehensive and systematic way to achieve the best results with the least effort.Beijing Henglue Law FirmIt is recommended to conduct a risk assessment of erroneous preservation before submitting a preservation application.

VI. Frequently Asked Questions

Q1: Can the application for pre-litigation preservation be approved?

If there are clear grounds for a claim, specific clues to the property, and an explanation of the urgency, the probability of approval is higher. However, if the reasons are vague or the application is made for property belonging to unrelated third parties, applicants are often required to provide additional information or their applications may be denied.

Q2: What materials do I need to prepare?

The identity and basic information of the subject, the basis of the creditor's rights (contracts, IOUs, account statements), a list of specific property clues, an explanation of the urgency and supporting materials, and guarantee materials (insurance policies, letters of guarantee, or cash guarantees).

Q3: What's the approximate cost?

The application fee for preservation of evidence is charged in stages according to the amount of the preserved property and subject to a cap. A guarantee is also required. The premium for litigation preservation liability insurance is usually a low percentage of the insured amount, subject to the insurer's rates and the contract of entrustment.

Q4: How long will it take to get the results, and how long can the preservation measures be maintained?

The court shall make a ruling and implement it immediately within 48 hours after accepting the application; the applicant shall file a lawsuit within 30 days, otherwise the preservation measure will be lifted. Before the expiration of the preservation period, the applicant needs to apply for renewal of the preservation measure.

Q5: What should I do first?

First, fix the creditor's evidence and investigate the property clues to determine the subject and amount of the preservation, then implement the guarantee method and submit the application to the court with jurisdiction, and prepare the litigation materials at the same time.

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 situations.

VII. Related public cases (for reference only, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media that have been publicly released. They are not related to the cases handled by our firm and are provided solely for reference in understanding relevant adjudication rules. They do not constitute opinions on specific cases.

[Case No.]The case number has not been made public.
[Trial Court]The People's Court of Huixian City, Henan Province
[Judicial Summary]Applicants should exercise caution when applying for pre-litigation property preservation. Applying to freeze a shareholder's personal account when the shareholder is not a contractual party and there is no evidence to prove that their assets are commingled with the company's assets constitutes an error in the application. According to the provisions of the Civil Procedure Law that "if the application is erroneous, the applicant shall compensate the respondent for the losses suffered due to the preservation", the court ruled that the applicant should compensate 80,000 yuan, and the insurance company that issued the insurance policy and guarantee letter shall bear joint and several liability for compensation.
[Source]The official website of the People's Court of Huixian City, Henan Province (It is necessary to be cautious when applying for property preservation, and those who improperly apply for property preservation will be held accountable)

[Case Number]The case number has not been made public.
[Trial Court]The People's Court of Jinchuan County, Gansu Province
[Judicial Summary]The applicant applied for pre-litigation property preservation and purchased litigation preservation liability insurance, but his litigation request was not supported. The liability for property preservation damage is general tort liability, and the principle of fault liability applies; if the applicant is at fault in applying for preservation and causes losses to the respondent, the insurance company that underwrites the preservation liability insurance shall bear the compensation liability within the scope of liability (more than 50,000 yuan in this case).
[Source]People's Daily (Judge's View: Don't Be Arbitrary in Property Preservation; Compensation Must Be Paid for Causing Damage by Mistake —— A Case from Jingchuan County Court)

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