wealth shift

Asset transfer – “Getting the sheep out of the dry”

A common trick used by debtors is to keep assets out of the creditor's reach or to conceal them in such a way that enforcement of the claim appears hopeless. Either property is transferred to a third party before the threatened enforcement or future income is paid into third party accounts so that an account seizure is futile. The inventiveness even goes so far as to maintain an account with a small balance, which only serves to leave the debtor in the good faith belief that there is nothing more to be gained from the debtor.

In particular, creditors with already enforceable claims should be aware of these problems.

Cancellation law as a solution

However, under certain circumstances, asset transfers can be reversed under the Rescission Act if creditors are deliberately disadvantaged by this legal action. Especially in cases where land or real estate has been transferred, obtaining an extract from the land register can provide clarity as to whether all is not lost.

access to third-party accounts

Even if third-party accounts are used, there are ways to access them, even though they are not in the debtor's possession. Legally, the debtor has a claim against the account holder acting in a "fiduciary" capacity to pay out incoming funds to them. This claim, like any non-personal right of the debtor, can be seized and then enforced by way of compulsory execution.

If you have claims that cannot be realized for these very reasons or that you have already written off, please contact us and we will assist you with advice and assistance.