#14
Enforcement & BankruptcyHigh Risk
The company suddenly files for bankruptcy, but you know it still has assets
Suspected Asset Stripping
Why It's Dangerous
Some companies transfer assets to affiliated companies or individuals before filing for bankruptcy, leaving creditors unable to enforce judgments. If you have reason to believe assets were moved before the filing, take prompt legal action.
Typical Scenario
After the opposing company filed for bankruptcy, the client had reason to believe the company had transferred assets to related parties before filing. The client pursued legal remedies to protect their interests.
* This scenario is illustrative, based on common patterns observed in legal disputes.
What To Do
1
The moment you spot signs of asset transfer, apply for a property preservation order immediately2
Investigate the opposing company's recent equity changes and asset movements3
Report suspected asset stripping to the court or relevant authorities4
Watch whether the opposing legal representative sets up a new company during the bankruptcy processHave you experienced this?