FAQ · Research

What can be done if the debtor has transferred assets to a spouse/relative?

The instrument here is an action to set aside the disposition. Where a debtor has transferred property to a spouse, a relative or someone else close to them in order to put it beyond a cred…

Updated · July 20261 min readCategory · Research
Short answer

The instrument here is an action to set aside the disposition. Where a debtor has transferred property to a spouse, a relative or someone else close to them in order to put it beyond a creditor’s reach, that transfer can be rendered ineffective as against the creditor under the avoidance provisions of the Enforcement and Bankruptcy Law (No. 2004) — Article…

The instrument here is an action to set aside the disposition. Where a debtor has transferred property to a spouse, a relative or someone else close to them in order to put it beyond a creditor’s reach, that transfer can be rendered ineffective as against the creditor under the avoidance provisions of the Enforcement and Bankruptcy Law (No. 2004) — Article 277 and following. If the action succeeds, the asset can go on appearing in the third party’s name and still be attached and sold for the creditor.

Some transfers attract that treatment particularly readily: those made close in time to the debt arising, those made for no consideration or at an undervalue, and those in favour of a close relative. What decides the case is documenting the chain and the timing — the dates of transfer, the parties, the prices paid. Our asset investigation is built to produce exactly that evidence set, which is what the action then rests on.

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