The debtor siphoned off assets; can I recover them through a creditor's revocation lawsuit?

I understand that you are inquiring about a creditor's revocation lawsuit.

As in the situation you describe, where a debtor transfers assets to family members or others without repaying the creditor, you can pursue a 'creditor's revocation lawsuit.'

Through this, you can nullify that disposition of assets and make compulsory execution possible.

This lawsuit constitutes the exercise of the 'creditor's right of revocation' based on Article 406 of the Civil Act.

This is a system whereby, if a debtor, knowing that it will harm the creditor, performs an act that reduces his own assets (a fraudulent act), the creditor petitions the court to revoke that act and thereby restores the debtor's responsible assets.

In other words, it has the effect of bringing back the siphoned-off assets and including them among the assets subject to compulsory execution.

For this lawsuit to be recognized, the following three requirements must be met, and if even one is lacking, the claim may be dismissed.

1. The existence of the claim to be preserved
2. The existence of a fraudulent act
3. The 'bad faith' of the debtor and the beneficiary

To file a creditor's revocation lawsuit, you must bring the action within one year from the day you become aware of the ground for revocation and within five years from the day the juristic act took place.

Gifts between family members, sales at a bargain price, and abrupt changes of title are highly likely to be recognized as fraudulent acts.

However, because a creditor's revocation lawsuit involves many complex issues, it seems advisable to prepare the lawsuit with the assistance of an attorney specializing in this area.