📖 Legal Explanation

1. What is an actio pauliana (fraudulent conveyance claim)?

An actio pauliana is a lawsuit aimed at invalidating a legal act by a debtor that diminishes the creditor’s ability to collect. This often includes gift agreements, sales below market value, or transfers to close relatives.

2. When can the creditor succeed?

You must prove three key points:
– The debtor owed you money
– The debtor transferred property to another person
– The transfer made it harder for you to recover your debt

If the transfer was to a close relative, the law presumes that they knew about the debt – this eases the burden of proof for the creditor.

3. Who should you sue?

Not the debtor – but the person who received the property. If the court rules in your favor, you can pursue execution (enforcement) against that property.

4. Deadlines and time limits

The lawsuit must be filed within 3 years from the time you discovered the transfer and its purpose. Don’t miss this deadline – otherwise your path to enforcement will be closed.

5. Practical steps

– Gather evidence of the transfer (e.g. land registry, gift contracts)
– Quantify and document the debt
– Consult a lawyer and file the lawsuit
– If you succeed, proceed with enforcement against the transferred asset

⚠️ Real-Life Example

Mr. V. had a final judgment awarding him 150,000 CZK. In the meantime, the debtor had gifted an apartment to his son. A lawyer filed an actio pauliana. The court ruled that the gift was intended to avoid paying the creditor. The apartment became enforceable. Mr. V. recovered the debt, even though he had nearly given up.

✅ Lawyer’s Recommendation

Not every asset transfer is untouchable. An actio pauliana is a powerful tool – but you must act quickly, gather evidence, and proceed carefully. If you suspect the debtor is hiding assets, don’t wait. Reach out while legal action is still possible.