If you have a due claim against another person, but that debtor has no assets from which you could recover, there is a legal institute through which you can satisfy your claim if the debtor has sold or gifted their property to a third party – Challenging the debtor’s legal actions:
- If the debtor has gifted their property to a third party, renounced inheritance, or otherwise transferred their property to a third party free of charge – you have the right to challenge the gift contract by which the property was gifted to the third party, after which the property returns to the ownership of your debtor and you can then collect your claim from that property.
- If the debtor sold their property to a third party or alienated it through another onerous transaction – you have the right to challenge the sales contract, but in this case you must prove: 1) that the debtor knew about your claim at the time of sale, and 2) that the third party was also aware of it.
- If the debtor sold their property to their spouse or a relative by blood in the direct line or collateral line up to the fourth degree, or by affinity to the same degree, you do not have to prove the above conditions.
Challenging the debtor’s legal actions is carried out by filing a lawsuit before the court against the third party. The deadline for filing the lawsuit is 1 year from the sale of the property, and 3 years from the gifting.
