Hiding assets by debtors in companies.

The goal of most entrepreneurs is not only to maximize profits from their operations, but also to minimize potential risk of financial liability in the event of any financial problems or insolvency. For this reason, when starting a new venture, some entrepreneurs choose solutions that limit the liability and possibly hinder the satisfaction of the creditor. Also at the stage of business development,implementation of solutions aimed at asset regulation between related entitiesis often encountered, in order to avoid the risk of losing them in case of bailiff enforcement.

Concealing property in separate companies.

Polish entrepreneurs operating in the form of a commercial law company often decide to allocate most valuable assets in entities other than the operating company in order to avoid the risk of enforcement of these assets in the case of solvency problems at the level of the operating company. Such solutions are extremely popular in Poland – an operating company uses only the property of a related entity, thanks to which all the valuable assets are located in another entity, the liability of which for the solvency of the operating company is excluded. That is why it is extremely important to examine credibility of potential Polish contractor. This type of examination will allow you to assess whether the contractor has assets to allow for possible payment of unpaid debts. This screening can also give an idea of the level of credibility of a given entity– an excessively developed business structure in which the majority of most valuable assets are located in a separate entity dedicated for sharing may be a signal of possible difficulties in debt collection.

Transfer of property to companies by debtors [HEADER H2]

A common way to hide assets by debtors is the transfer of ownership of assets to commercial law companies as early as at the stage of potential claim made by creditor, or even at the stage of enforcement. Actions of this kind require immediate response from the creditor, however their effectiveness towards the creditor can be effectively challenged before common court. In such a case, for the sake of effective enforcement it will be necessary not only to identify the fact that the debtor has disposed of property and transferred it to separate corporate structures, but also to determine which assets have been are transferred and where to. Such activities may require support from professional entities, such as, for example, business intelligence or detective agencies. Support in this scope will not only facilitate success of potential court proceeding, but also allow successful bailiff enforcement or debt collection activities thanks to establishing the nature of the property and its location. 

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