Debt collection attorney, I have a question about a lawsuit for revocation of a fraudulent act.

A fraudulent act is an act in which a debtor, while knowing that it harms the creditor, performs a juristic act concerning property and thereby further worsens the debtor's state of excess liabilities; put simply, it refers to the act of concealing property in order to avoid repaying money.

The lawsuit for revocation of a fraudulent act set out in Article 406 of the Civil Act refers to a lawsuit that, when it is clearly revealed that a fraudulent act was committed, revokes the debtor's act and restores it to the debtor's liable property, and it is a lawsuit that revokes the act when the debtor's act of disposing of property works to the disadvantage of the creditor.

If you have learned of the fact of a change in the title of real estate, it is important to secure evidentiary materials that can prove it and to prove whether there was awareness that the debtor would fall into or deepen a state of excess liabilities (intent to defraud creditors).

However, because a fraudulent act is an act that harms the creditor, if in substance there is no decrease in the debtor's total assets compared to the total amount of the liabilities, it cannot be regarded as a fraudulent act.

To proceed with a lawsuit for revocation of a fraudulent act, the creditor's claim must exist, and evidence to prove it is required.

In addition, you must prove the fact that the debtor disposed of the relevant property and thereby infringed the creditor's rights and that the relevant act of disposal was carried out while the debtor was in a state of excess liabilities, and you must be able to prove that the debtor intentionally planned the fraudulent act.

The revocation of a fraudulent act must be exercised within 1 year from the date of becoming aware of the cause for revocation, and the lawsuit must be filed within 5 years from the date of the act, so a prompt response is necessary.

However, in order for the result of such a lawsuit to work in your favor, it is important to collect evidence with the assistance of a legal professional, such as a debt collection attorney, and to make favorable statements in court.

If you need help, please seek the assistance of a damages and debt collection attorney at our firm who has abundant experience in cases of revocation of a fraudulent act.