17-01-2013 | Transactions that can be set aside

 When a Company heads towards insolvency or an individual heads towards bankruptcy, they sometimes transfer their assets and property to other Companies or individuals, often well below the market value of the assets. This is usually done to place the assets beyond the reach of their creditors when they become insolvent.
The law divides these types of transactions into three. Firstly, where the Company or individual has entered into a transaction at an undervalue; Secondly, where the Company or individual carries out a transaction with the intention of defrauding its creditors; Finally, if the Company or individual transacts with one creditor so as to prefer that creditor over all other creditors. These three situations have very different requirements and time limits. If a transaction falls within any of the three situations, then the transaction can be set aside by the court.
If you are such a creditor or are an individual or Company that would like to transfer assets to third parties in accordance with the law, please do not hesitate to contact us.