Common Asset Hiding Techniques
Learning some of the most common ways that a person can hide their assets will help when dealing with a delinquent client. Hiring a collection attorney to investigate hidden assets will save you a lot of time and money because they are experienced in the ways that people try to avoid debt recovery.
Funds can be hoarded or converted into assets that can be resold, such as jewelry, real estate, or investment securities. This is known as hoarding or converting into resalable assets.
These funds may also be converted into other liquid instruments, such as savings bonds, traveler’s checks, or cashier’s checks. Through the purchase of cashier’s checks or traveler’s checks in smaller denominations, the subject can carry negotiable instruments that can be exchanged just about anywhere in the world. Collection agency lawyers
have the ability to investigate and usually track these funds.
The most common means of hiding assets, particularly real estate and business interests, is to transfer the asset into the hands of another person that will allow the subject to maintain control. In many cases, the subject will transfer the assets into his or her brothers, sisters, business partner or close friend’s name.
Transfers to other persons are often pretty easily detected by comparing the oldest financial statement with the newest financial statements of the debtor. Assets that do not appear on the most recent statements and not on the older ones are usually ones that have been transferred to another person.
Assets may be transferred to a children’s or family trust. These assets would then be protected from judgment in the court of law. This is not the most common way of transferring assets, but it can cause a headache for collection agency lawyers
if they are not detected.
A more common way for businesses, as opposed to individuals is to hide assets in fictitious businesses or in bank accounts under a fictitious name. Identifying documents such as tax identification number or Social Security number may even be obtained in the fictitious name.
Lastly, a person may try to hide money by prepaying mortgage loans or credit card since they will apply the money to later balances it is often not returned to the debtor. They will use this to hide their assets, leaving it out of the hands of the collector. If a collection attorney
properly investigates the assets and income, they may be able to prove their ability to pay and intent to hide assets which will usually result in a judgment in your favor.
Make sure you hire a collection attorney you can count on. At CollectionFirm.net our seasoned collection agency lawyers will make sure we do everything we can to uncover assets that are intentionally hidden to avoid payment.
Contact us today to set up your consultation and start recovering unpaid debts.