Agora Détectives

How to prove a fraudulent organization of insolvency?

Insolvency is a situation in which an individual or a corporation is unable to repay its creditors . The incapacity due to a lack of assets which result over a period of time in filing for bankruptcy and bankruptcy.

This situation always penalize the parties to be compensated.

But it happens that the debtor is in bad faith and has voluntarily organized this insolvency. In these cases, you have to act quickly with the help of a lawyer and a private detective. Their team work is essential.

A fraudulent organization of insolvency constitutes an offense

This maneuver consists of escaping one’s debts by voluntarily going bankrupt. It is very difficult to prove this organization and the possible intervention of a private detective can prove vital for the creditor! The private investigator will be able to collect legal evidences that can be submitted to the court if necessary in order to obtain a legal decision. Bankruptcy is not punishable by law, legally a person who does not have the means to pay his debts cannot be prosecuted. However, if the insolvency is organized fraudulently, it is considered as an offense punishable by article 314-7 of the penal code of three years of imprisonment and 45,000 euros in fines.

Code pénal

Note: the simple fact of keeping silent about part of one’s income or assets to the creditor, does not make it possible to characterize the offense of fraudulent insolvency organization! It must be proven that this concealment had the effect of organizing or even aggravating the insolvency of the person who kept silent to escape his creditor.

Who are the main victims of fraudulent insolvency organizations?

  • Victims of accidents requiring compensation.
  • Victims of theft or fraud (very often companies).
  • People not receiving alimony or compensatory allowance.

Companies do represent the vast majority of victims, but the fact remains that many individuals could face the same situation.

Caddy euros

Why call on a private law investigator?

Today, the law has widened its scope concerning the insolvency organization and the remedies are more effective with the collection of evidence prooving these fraudulent arrangements.

Indeed, during a trial, the judge will be able to motivate his legal decision by taking into account the informations and evidences that will appear in the private detective’s investigation report.

The investigation report will demonstrate the strategy of the debtor

The private investigator can succeed in proving the will of impoverishment or concealment of income, because the debtor will have:

  • Increased the liabilities or decreased the assets of its real estate or banking assets.
  • Reduced or concealed all or part of his income (dividends, monthly annuities, retirement pensions, property income).
  • Concealed some of his property or income in France or abroad.
  • Made transfers to a bank accounts abroad or to the bank accounts of an accomplice.

It should be specified that it does not matter whether this act was carried out before or after the conviction of the debtor.

Some common techniques for organizing insolvency during a divorce

  • Subscribe to real or fictitious loans.
  • Make donations: (usufruct to a relative while retaining the use of the property).
  • Destroy personal property.
  • Voluntarily postpone income collection and leave the money into the partners’ accounts.
  • Moving without communicating the new address.
  • Use front man or straw men.
  • Buy goods that can be easily underestimated in a declaration of resources (historical monument, art works and collectibles, paintings, sculpture, NFT, etc.).
  • Make a fictitious contract of sale of his goods to a third party.
  • Delay the payment of dividends.

If no proof is provided, the plaintiffs are dismissed

If no proof is provided, the plaintiffs are dismissed: When proof of the fraudulent insolvency organization is not established , the courts will dismiss the claims. As a reminder, article 9 of the New Code of Civil Procedure states: “It is the responsibility of each party to prove, in accordance with the law, the facts necessary for the receivability of its claim”. The private detective therefore has a key role in gathering the evidences and his skills in building a legal case are essential.

The private detective can carry out different types of field investigations such as digital and computer research to recover sufficient evidence for the constitution of the justice file.

The standard method of collecting evidence for detectives in this type of case

As with all other investigations, a methodical step by step work will be implemented using the following legal techniques:

  • Implementation of appropriate monitoring.
  • Neighborhood surveys. (if relevant and possible)
  • Administrative research.
  • Telephone approach scenario.
  • Field survey.
  • Legal surveillance.
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