Antohi Laurențiu Law Office
The Paulian action — bringing fraudulently hidden assets back within reach of a debtor’s creditors.
Does a debtor who, after the debt arose, gave away or sold assets cheaply to appear to own “nothing” when it comes to enforcement? A Paulian (revocatory) action lets you have that transaction declared unenforceable against you and pursue the asset as if it had never left the debtor’s estate.
What must be proven to win.
A certain claim, predating the transaction
You must have a certain claim against the debtor, existing before they carried out the transaction you want to challenge — a judgment, a contract, or an overdue, unpaid invoice are common examples.
Harm to the creditor
The challenged transaction — usually a gift or a sale at a price clearly below the real value — must create or increase the debtor’s insolvency, so that you can no longer be paid out of their estate.
The third party’s complicity, only for transactions for consideration
If the debtor sold the asset (a transaction for consideration), it must be proven that the buyer also knew about the fraud. If it was a gift (a transaction without consideration), this condition is no longer required — it’s enough to prove the debtor’s fraud.
How the action unfolds, in practice.
Identifying the fraudulent transaction
I review the debtor’s transfers from the relevant period — sales, gifts, security interests created — and assess whether they meet the conditions to be challenged.
Filing the court action
I draft and argue the Paulian action, proving the claim, the harm and, where relevant, the complicity of the third-party acquirer.
The effect: unenforceability of the transaction
If the action succeeds, the transaction remains valid between the debtor and the third party, but becomes unenforceable against you — you can pursue the asset through enforcement proceedings as if it had never left the debtor’s estate.
One year from when you learn of the transaction, not from the date of the transaction.
The 1-year limitation period doesn’t automatically run from the date the debtor carried out the transaction, but from the date you, as creditor, learned (or should have learned) of the harm. If you recently discovered an older, suspicious gift or sale, you may well still be within the deadline.
Send me the documents before we talk.
Fill in the form below, selecting “Paulian Action” as the type of issue. Upload proof of the claim and the transaction (the sale contract, the gift deed) you want to challenge, if you have it.