How to collect a debt from assets hidden overseas

How to collect a debt from assets hidden overseas

On Behalf of | Jun 1, 2021 | Collections

One tactic debtors may use to try and keep their assets out of the reach of their creditors is to move them overseas. Their thinking is that once the money crosses an international border, you cannot touch it as a creditor. You may wonder if there’s some validity to that logic.

Tracking down assets hidden overseas can be challenging. Yet, with enough time and experience, you can find most of them. Complications arise when you want to get your hands on the assets held abroad.

Recovering debt via overseas assets will not be easy

One option for recovering debts is to target the person still located within California’s borders. If you can win a judgment, then you can cripple them financially to the point where they may decide it is simpler to pay up. You could limit their ability to bring money into the country or to spend money they earn here. You could also damage their credit score or force their companies into bankruptcy.

In addition, after obtaining a judgment against the debtor residing in California, you can bring them into Court for a judgment debtor examination. At the examination, since the court has personal jurisdiction over the debtor, the court can order the debtor to repatriate the funds to the United States in order to pay the judgment. If the debtor disobeys the court order, the debtor faces possible time in prison.

In some cases, it will be worth pursuing litigation in the country where they hold their assets. It can be costly and complicated to pursue litigation abroad, yet it may pay to do so if the debt is large enough. It is up to the country concerned whether to cooperate or not.

Another tactic for collecting a debt is considering how the debtor transferred the money out of the country and how they are holding it. Did they perform a fraudulent transfer to a member of their family? If so, then you could pressure them by taking legal action against that family member.

Some people revel in their ability to cheat people out of the money they owe them. Yet, with the right help, you can find creative ways to put legal pressure on a debtor and increase the chances of repayment of what they owe.