Shenzhen bosses fear waiting the most when chasing debts? A set of real data tells you: in civil and commercial litigation, the cycle and odds of winning depend not on the court, but on the evidence.
Mr. Chen, who runs an electronic components trading business in Futian, Shenzhen, came to us at the end of last year with a statement of account. The other company owed him 8.6 million yuan in payments, which had been delayed for nearly a year. Every time he followed up on the debt, they said, "We'll arrange it next week," but next week kept turning into the week after. What worried Mr. Chen most wasn't that the other party lacked funds, but that he had heard people say, "It's normal for a lawsuit to drag on for two or three years," and he feared his company's cash flow couldn't hold out. This was his first time filing a lawsuit, and the question he asked most was: from filing the case to actually getting the money, how long does it really take?
Let me start with the conclusion: Shenzhen courts handle civil and commercial contract disputes far more quickly than outsiders might expect. According to data from trial white papers published by Shenzhen courts in recent years, the average trial period for civil and commercial cases in basic-level courts is within six months, while the average trial period for second-instance cases in the intermediate court is about four months. In other words, for an ordinary contract dispute involving a claim amount of several million yuan, if it goes through both first-instance and second-instance trials, the time required for legal proceedings is approximately 10 to 12 months.
But there's a misconception here. Many clients equate the "trial period" with the "collection period." In reality, a judgment is only the first step—what truly determines whether you can get your money is the enforcement phase. In Lao Chen's case, we did the math for him at the time: if the other party had funds in their account, after the first-instance judgment took effect and enforcement was applied for, the funds could be transferred within 1-2 months at best. However, if the other party had already transferred their assets in advance, the enforcement could be delayed indefinitely.
Old Chen's case ultimately took four months, from filing to the enforcement funds arriving in his account—over half a year faster than he had anticipated. The key here wasn't luck, but acting swiftly enough.
We applied for property preservation on the second day after taking the case. Why? Because according to Article 103 of the Civil Procedure Law, the court may, upon the other party's application, rule to preserve the property of a party in cases where a judgment may be difficult to enforce due to that party's conduct. Simply put, we freeze and seal the other party's bank accounts and real estate to prevent them from transferring assets. This move immediately put Old Chen's debtor on edge—with the account frozen, business ground to a halt, and he proactively came to us to discuss a settlement.
The odds of winning a contract dispute are actually 70% determined before the lawsuit is even filed. Old Chen had in his hands reconciliation statements, delivery notes, VAT invoices, and several WeChat chat records where the other party admitted to owing the money. These pieces of evidence formed a complete chain, leaving the opposing party no angle to deny it. As a result, the entire lawsuit went smoothly—after just two court sessions, the other party backed down.
In all my years practicing in Shenzhen, I've seen too many cases where lawsuits were filed only at the very last moment. Some business owners think, "Let's talk it out first, and only turn hostile if we really have to," only to end up negotiating for over a year while the other party quietly cleans out their assets. By the time they think of suing, they may win the judgment, but when it comes to enforcement, there's no property to be found.
The duration of civil and commercial litigation largely depends on three variables. The first is the choice of the court with jurisdiction—whether the contract stipulates jurisdiction and in which district it is designated directly affects how quickly the case can be filed. Courts in Futian and Nanshan districts of Shenzhen have long been saturated with cases, but their filing procedures are already quite standardized; once online filing is approved, a hearing is typically scheduled within one to two weeks. The second is the service of process—if the opposing party deliberately avoids receiving the summons, service by publication will require an additional 60 days. The third is the initiation of appraisal procedures—for example, when there is a dispute over the authenticity of an official seal or a handwritten signature, judicial appraisal usually takes two to three months.
Question: How much will it roughly cost in attorney fees and court fees to sue for a contract dispute? For a case with a claim amount of 8.6 million yuan, the court fees are approximately 70,000 yuan, while attorney fees are determined through negotiation based on the complexity of the case and the claim amount. However, if you win the lawsuit, you can request that the other party bear the court fees, and if the contract stipulates that the breaching party bears attorney fees, you can also claim those as well. Therefore, the cost of litigation is not as high as one might imagine; the key lies in how detailed the contract terms are written.
Another frequently asked question is: what if the other company is already insolvent or has been deregistered? This brings up another step. The due diligence conducted before filing a lawsuit is not just about whether they have money, but also about whether their shareholders have failed to make capital contributions or have withdrawn registered capital improperly. If such situations exist, the shareholders can be named as co-defendants and be held liable to the extent of their unpaid contributions. This is also a point that many business owners tend to overlook.
The day Old Chen's 8.6 million arrived, he came by the law firm and sat for a while, saying something that left a deep impression on me: "If I'd known it could be settled in four months, I shouldn't have dragged it out myself for that whole year." Indeed, the pain point in many commercial disputes isn't the law itself, but the hesitation and wishful thinking of business owners.
Mr. Wang, who also runs a business in Shenzhen, was not so fortunate. He was owed 3.2 million yuan in payments, and it took him three years before filing a lawsuit. Although he won the case, the opposing company had long since transferred its assets to affiliated companies, leaving only a worthless old car in its name. He obtained the court judgment, but not a single cent could be recovered through enforcement. The same court, the same type of case, yet vastly different outcomes—the difference lies in the timing of the lawsuit and whether preservation measures were taken in time.
In handling civil and commercial litigation in Shenzhen, timing is everything. The golden window for resolving contract disputes is often within the first three months after the other party first defaults, before they have had a chance to massively transfer assets. If you wait more than six months to take action, the difficulty multiplies.
Over the 26 years that Guangdong Zhiming Law Firm has handled more than 10,000 cases, contract disputes have made up the bulk of them. Director Shen Jinlong often tells us that litigation is not the goal—getting the money is. In many cases, the key lies in sorting out evidence before filing the lawsuit, tracing property leads, and decisively applying for preservation measures to keep the initiative in our own hands. If you're facing a similar commercial dispute and aren't sure how to assess the timeline or your chances of winning, you can call 0755-25986969 to have a chat. Zhiming Law Firm is located at Suite 1802, Building A, Xintian Century Business Center, Shixia North Second Street, Futian District, Shenzhen. You're welcome to drop by with your materials. Free consultation hotline: 0755-25986969.
Regarding the cases mentioned in the article, if you have similar situations as well.
You can directly call 0755-25986969 to talk to a marriage and family lawyer. The first consultation is free. The law firm is located at Room 1802, Building A, Xintian Century Business Center, Shixia North Second Street, Futian District, Shenzhen.