Finding hidden assets can be a challenge when trying to collect on a debt. Many businesses that owe money may try to hide their assets in an attempt to avoid losing them in the collection and judicial process. There are many ways a commercial collection agency can go about finding these hidden assets. Some debtors may use the names of relatives to hide their assets, while others may even have different aliases and social security numbers. A background check could be an initial strategy to help bring these discrepancies to light. Read more about how assets are concealed and found, below and in future articles.
Hiding Assets with Gifts
Gifting an asset to avoid commercial collection is one of the examples of fraudulent conveyance. One way people may try to hide assets is to gift them to trusted friends or relatives in an attempt to make them exempt from creditors. If the gift can be proven as a fraudulent conveyance, this tactic will not work, which is why you need a commercial collection agency. Sometimes gifting these assets can cause additional problems if the person selected does not want to return gift later on, and the gifter never receives the asset back. Fraudulent conveyance is a dishonest approach to hiding assets, but the person may still end up without the asset.
Owed money by another business? Call (804) 346-0302 ext. 222 or see our rates.