How long does it take to file a lawsuit for a contract dispute in Shenzhen, and four issues from filing to receiving payment

Last Wednesday afternoon, in his office in Futian, Mr. Chen, who deals in electronic components, laid out a stack of account statements on his desk and asked directly, "The other party owes me over four million yuan, which has been delayed for almost a year. I want to sue, but I heard it takes one or two years to file a lawsuit in Shenzhen? Can I afford to wait for this money

This is not his own confusion. Lawyers who work in commercial litigation encounter similar consultations almost every week. Today, select the four most frequently asked questions and, based on the actual pace of the case, explain them clearly in one go.

Give me a rough timeline first. The average trial period for civil and commercial cases in Shenzhen's two-level courts is between 6 and 12 months, which is the statistical caliber from filing to first instance judgment. But 'getting the money' and 'getting the verdict' are two different things. If the ordinary procedure is followed, the court hearing is usually arranged within 1 to 3 months after filing the case, and the judgment will be issued within 1 to 3 months after the court hearing. After the judgment takes effect, if the other party does not actively perform, they still need to apply for compulsory enforcement. The enforcement case will take another 3 to 6 months from filing to investigation, auction, and deduction, if everything goes smoothly. So a complete "filing judgment execution" chain, lasting 8 to 18 months, is the norm. The larger the target amount, the more entities involved, the more complex the preservation of property, and the longer the period. A company in Nanshan Science and Technology Park is seeking over 10 million yuan in service fees, but has had three rounds of disputes over jurisdiction alone, and it took five months to enter the physical trial.

Question 1: What affects the speed of payment collection the most

The key variable is whether property preservation is done well or not. If the other party's account is frozen or their property is seized while filing a lawsuit, many defendants will actively negotiate a settlement before the court hearing. The average payment cycle for cases with adequate preservation is usually significantly shorter than those without preservation, as the bargaining chip in negotiations has shifted from 'wait until judgment' to 'account cannot be moved now'.

There is a case of an equipment supply company that can illustrate the rhythm. The customer is supplying equipment in Longhua. The other party is a manufacturing enterprise in Dongguan, which owes more than 8 million yuan in payment. There is a contract, delivery note, and statement of account, and the evidence chain is complete. After taking over, I did three things: in the first week, I applied to the court for pre litigation property preservation and froze the other party's two basic accounts and one general account; Simultaneously explain to the court that the facts of the case are clear and the dispute is not significant, and apply for the application of the simplified procedure; After filing the case, proactively communicate with the presiding judge and compile the disputed points into written materials in advance. The court session was held on the 38th day after the case was filed, and the judgment was received on the 72nd day. The other party did not appeal. On the 15th day after the judgment came into effect, the enforcement agency applied for execution and directly deducted all the funds and interest from the frozen account. From filing the case to receiving the money, it took more than four months.

The key to running this case so fast is one word: fast. Fast security, fast communication, and fast program selection. Many parties hesitate whether to wait and see if the other party will take the initiative to give, and this hesitation lasts for three months. The other party's account has already been cleared.

Question 2: If the other party doesn't have any money in their account, does it mean there's no chance

This is the most realistic problem. In Shenzhen court enforcement cases, a considerable proportion of cases were terminated due to the debtor having no property available for enforcement. But 'no money in the account' does not mean 'really no money'.

In a sales contract dispute in Futian District, the defendant company's account balance was only a few thousand yuan, but through a lawyer's investigation order, it was found that it had accounts receivable on a certain platform, shareholders had unpaid capital, and a car registered under the name of an affiliated company. In the end, most of the funds were recovered by adding the debtor and enforcing the due debt.

The key actions to be taken before filing a lawsuit are: checking the internal files of the industry and commerce to see if the shareholders' contributions are in place, checking the litigation records to see if other creditors are already in line, and checking the registration of real estate and vehicles. Lawyers can retrieve this information with an investigation order. If it is found that the other party is transferring property, they can also file a lawsuit for the revocation of the creditor's right to recover the assets that have already been transferred. To put it simply, whether the execution is difficult or not depends on whether the debtor has the money and whether there is any advance planning.

Question 3: Is it okay not to file a lawsuit

not always. Lawsuit is the last resort, but it's not the only way. It is generally recommended to evaluate in this order: sending a lawyer's letter first is cost-effective, fast, and often effective for debtors who still have a willingness to cooperate; At the same time, thoroughly investigate the other party's financial situation and prepare for subsequent preservation; If the other party has a tough attitude or is clearly transferring assets, immediately sue and apply for preservation, do not delay.

The Shenzhen Intermediate People's Court and many basic courts now have pre litigation mediation procedures. For commercial cases with an amount of less than 5 million, there is no small space for mediation. Mediation agreements also have compulsory enforcement power, and the period is usually shorter than that of judgments. But one thing to remind: mediation is possible, and preservation cannot be sacrificed for the sake of mediation. I have seen the customer being stabilized by the other party's argument of 'two more months', but after two months, the other party's company was deregistered. Don't wait for a moment for accounts that should be frozen.

Question 4: What do lawyers do in it

The approach to resolving commercial contract disputes is clear: preservation first, negotiation later, and expedited procedures. The cases discussed by the director and partners should be handled by themselves without changing hands midway, so that the time cost will not be consumed during the handover. Specifically for individual cases, first check whether the contract and performance evidence are complete, then examine the other party's subject and property status, and finally select the procedure.

If you are being dragged by payment for goods, contract payments, or loans, and are unsure whether to send a letter or file a lawsuit, first sort out three things: the original contract, the performance certificate, and the other party's property clues. These three things are clear now, and there is basically an answer to what to do next, which is much better than just sitting there and waiting.

This article is compiled by Guangdong Zhiming Law Firm and is only for general legal information sharing. It does not constitute a legal opinion on specific cases, nor does it represent a commitment to the results of individual cases. The case cycle and payment situation are influenced by multiple factors such as evidence, property status, and court scheduling. Please consult a practicing lawyer based on your own materials.