If someone owes you money and you’re trying to collect, it’s already a frustrating situation. If they would have just paid like they agreed to do, this whole situation could have been avoided. But they haven’t paid, and now you have to try to actively seek that money.
Worse yet, you believe that they could pay. It’s not an issue of not having the assets to pay their debts. They just don’t want to pay. They have the money and they could give you what you justly deserve.
Will they hide those assets?
As such, you’re worried that they’re going to try to hide the assets. How might they do it? Here are four potential ways people could be hiding their money:
- Opening protected accounts: They could start up a retirement fund for the express purpose of putting as much money into it as they can, as fast as they can.
- Giving assets to someone else: They may “remember” that they were supposed to pay back a $20,000 loan from a friend, for instance, or decide to “give” a family member a very generous birthday present. Don’t be fooled: They’re just trying to get the assets out of their name.
- Misrepresenting what they have: For instance, if they contact you to talk about a long-term repayment plan, they may act as if they don’t have the money on hand when they actually do.
- Reducing their tax return: Essentially, they want to reduce any money coming in that is easy to track and record so that it appears that they have less than they do.
If you believe that a debtor is committing fraud and trying to keep from paying what they owe, you must understand all of your legal options.