News that a debtor is transferring an asset is a starting point. The debt, the disposal and the remaining assets must be assessed separately, without automatically assuming that the sale can be made ineffective against a creditor.
Three questions to start with
- What relationship gave rise to the debt, and what payment dates are recorded?
- Has a sale merely been announced, or has a specific deed been identified?
- What other assets or security have actually been checked?
Prepare for an initial discussion
Keep the documents establishing the debt, information about the transfer and asset searches separate, each with its date and source.
Next steps
The guide to a debtor’s sale of real estate examines the checks and different forms of protection. The route on the risk of assets being dissipated helps describe the facts suggesting urgency for a lawyer to assess.
Before sending documents or confidential information, wait for the conflict-of-interest checks and the firm’s instructions. Initial contact does not create an engagement.