In the realm of legal proceedings, ensuring that a future court judgment can be effectively enforced is paramount. One crucial strategy to prevent the defendant from transferring assets is to apply for an asset freezing order.
This legal process can be initiated under special circumstances even before filing a lawsuit, although it typically requires urgent situations and is challenging to obtain approval. More commonly, lawyers recommend applying for an asset freeze after filing the lawsuit, as the success rate is significantly higher.
However, it’s important to understand the associated costs, including the application fee and insurance fee, and the potential risks involved. This article delves into the intricacies of applying for an asset freeze, providing insights into the legal process and the costs of filing a lawsuit in China.
Why I need to Freezing Assets?
To ensure that a future court judgment can be effectively enforced and to prevent the defendant from transferring assets, lawyers sometimes recommend applying for an asset freeze against the defendant.
In special circumstances, you can apply for an asset freeze before filing a lawsuit, but this requires special reasons or urgent situations and is difficult to obtain approval. Therefore, we usually recommend applying for an asset freeze after filing the lawsuit.
Based on our experience, the success rate of applying for an asset freeze after filing a lawsuit is significantly higher, though not guaranteed (if the court does not approve, you do not need to pay the fee). It is also important to note that even if the court approves your application, it does not guarantee that the defendant has sufficient assets to freeze.
Therefore, there is a risk that the freeze application may not secure enough assets. If the court approves but insufficient assets are frozen, you will still need to pay the fees.
The costs of asset freeze?
The cost of applying for an asset freeze includes an application fee and an insurance fee. This is because, at the time of application, it is uncertain whether you will win the case, and freezing assets may cause some loss to the defendant.
Therefore, the law requires you to provide a guarantee. By paying a fee to an insurance company, the insurance company will provide the guarantee to the court on your behalf. If the application is later found to be incorrect, the insurance company will compensate the defendant for any losses caused by the wrongful freeze. For more details on the costs of applying for an asset freeze, you can refer to “Costs of Filing a Lawsuit in China.”
The benefits of applying for an asset freeze, in addition to preventing the defendant from transferring assets and ensuring the judgment can be enforced, include encouraging the defendant to resolve the dispute quickly and increasing the likelihood of a settlement.
Therefore, applying for an asset freeze presents both significant benefits and potential risks.
This legal measure can effectively prevent the transfer of assets, ensuring that a future court judgment can be enforced.
However, it is crucial to weigh these advantages against the specific circumstances of your case. The costs involved, including the application fee and insurance fee, as well as the possibility of insufficient assets being frozen, must be carefully considered. If you are uncertain about whether to pursue an asset freeze, we strongly recommend consulting with our legal experts.
Our team can provide tailored advice to help you navigate this complex legal process and make an informed decision.
Hongyu Huo
License No.: 13201202311712527
About the Author:
Hongyu is a highly skilled attorney specializing in both criminal and civil law matters.
She has successfully assisted numerous clients, earning a reputation for her exceptional legal acumen and dedication.
Hongyu is known for her approachable and friendly demeanor, making her easy to communicate with and well-liked by her clients. She always prioritizes her clients’ best interests, ensuring they receive the best possible legal advice and representation.
Whether dealing with complex criminal cases or intricate civil disputes, Hongyu’s commitment to excellence and her compassionate approach have made her a trusted and respected figure in the legal community.
(Contact: zlxlawyer@bjcelue.com or WhatsApp +86 18362959702)
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