A debtor’s declaration that they have no assets does not settle the matter. In arbitration disputes, the value of the claim is often determined by whether the debtor’s assets abroad can be identified. Below, we explain how the search for a debtor’s assets abroad is conducted, what we verify, and what information is provided to the lawyer handling the case.
Where do you start when looking for assets abroad?
The first step is to determine in which countries it is worth conducting the search. To this end, we analyse:
- the debtor’s business history,
- their investments,
- links with foreign companies,
- and transactions carried out.
Documents gathered by the solicitor during the dispute often provide clues as to the direction of the search.
Which of the debtor’s assets do we check?
1. The debtor’s current assets
We are primarily looking for property, movable assets and shares in companies. In each case, we check who the owner is, whether the information is up to date and whether there are any encumbrances on the asset. We compare the data from the registers with financial documents and other available sources.
2. Assets that previously belonged to the debtor
We reconstruct the history of changes in ownership: when the assets were transferred, who acquired them, and what the relationship was between the parties to the transaction. The mere fact of a sale or a gift does not in itself prove that the debtor is concealing assets. What matters are the circumstances of the transaction and the documents supporting it.
3. Assets of entities associated with the debtor
The debtor’s shares in a foreign company and the property owned by that company are two separate assets. Demonstrating a link between the debtor and the company does not replace the need to verify who actually owns the asset in question.
What else does a lawyer need apart from a list of assets?
A list of the assets identified is not usually sufficient in itself to take further action. A comprehensive search report should include:
- the sources of each piece of information,
- the dates on which the data was verified,
- a clear distinction between confirmed findings and leads requiring further investigation.
Only such material enables a lawyer to assess whether and how a claim can be secured or enforcement proceedings initiated.
What determines the scope of the arrangements in different countries?
Search capabilities depend on the jurisdiction and the availability of data. Countries differ both in terms of the transparency of their registers and the ability to search them. The fact that it is possible to check the owner of a specific property in a given country does not mean that it is possible to identify all the properties owned by that person. Different rules may also apply when determining the assets of a natural person, as opposed to those of a company.
Frequently Asked Questions
Does a debtor’s declaration that they have no assets mean that the debt cannot be recovered?
Nie. Dłużnik może posiadać aktywa za granicą, udziały w spółkach lub majątek przeniesiony na podmioty powiązane. Ustalenie tego wymaga analizy jego historii działalności i transakcji.
Does transferring assets to another person amount to concealing them?
Nie automatycznie. Kluczowe są okoliczności transakcji, relacje między stronami i dokumenty.
Is it possible to check what property a debtor owns in every country?
No. The availability and searchability of registers vary from one jurisdiction to another.
Check out other articles on our blog:
