The Paulian complaint is simply a tool that allows creditors to undermine the debtor's actions to reduce or completely dispose of his assets. If the debtor deliberately eliminates his assets, the creditors, utilizing this instrument, may block these activities. Below is simply a detailed description of this process:
The Paulian action is simply a legal measurement under civilian law and its regulations are contained in the civilian Code. According to Articles 527 and 528 KC, creditors have the right to challenge the legal acts of the debtor which benefit a 3rd organization at the expense of creditors. A condition for the effectiveness of the Paulian complaint is to act as a debtor with awareness of the harm to creditors and to know or be able to find out about it by a 3rd party.
The legal activity of the debtor shall be regarded as detrimental to creditors if it renders it insolvent or more insolvent than before the action. In addition, if a 3rd organization obtains a property benefit as a consequence of the action of the debtor, it is presumed to have been aware of the intentional harm to creditors.
All creditors of the debtor, whether natural or legal, are entitled to benefit from the Paulian complaint and regardless of the dimension of the obligations. Where a suit is filed in accordance with the principles of the Paulian complaint, the creditor must supply evidence of the existence of an work between him and the debtor and prove that the debtor has depleted his assets to an degree preventing the repayment of the debt.
The time limit for the submission of the Paulian complaint shall be 5 years from the date on which the debtor carried out the contested action. After that date, the claim is subject to limitation and the court may not take it into account. The court fee for filing a suit shall be 5% of the value of the dispute, i.e. the amount of the creditor's claim. Creditors may apply for exemption from judicial costs if they prove that they are incapable to cover them without harming their maintenance.
In court proceedings relating to the Paulian action, the court shall hold a proceeding during which it hears the arguments of both parties and their witnesses. After the hearing, it shall issue a decision which may confirm the effectiveness of the complaint, taking the view that the action of the debtor has no legal effect on the creditor or reject the creditor’s request. The parties shall be able to lodge an appeal against this decision within a specified period.
The Paulian action will not apply if it is lodged after the limitation period and if the creditor does not show that the debtor acted harmfully. The effectiveness of the action depends on the correct formulation of the claims in the application and the convincing presentation of arguments before the court.
- What does Paul’s complaint include?
The Paulian action allows the court to recognise the ineffectiveness of the legal action by the debtor in relation to the creditor. The creditor may recover his claim from a circumstantial component belonging to a 3rd organization with precedence before his creditors.
- Who is the suspect in the Paulian complaint?
The suspect in the Paulian complaint may be both the debtor and the 3rd organization who has received the asset benefit from the debtor.
- How do you defend yourself against a Paulian complaint?
The defence against the Paulian action mainly boils down to the submission of a plea of limitation of claims by the creditor or to the demonstration that the action was intended to harm only future creditors. a 3rd organization may question its alleged cognition of the intention to harm creditors, the incorrect intentions of the debtor and its insolvency at the time of the legal act.
- Can the establishment of a mortgage be contested by a Paulian action?
Yes, the establishment of a mortgage may be contested by a Paulian action.
- Can a bailiff file a Paulian complaint?
The right to lodge a Paulian complaint is the creditor who was injured by the action of the debtor. In practice, this means that bailiffs do not bring specified complaints to court.
- Can the Syndych file a Paulian complaint?
Yes, but only erstwhile we're dealing with bankruptcy proceedings.
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What is and who is the Paulian complaint?:
