Financial Investigations to Locate the Assets and Value of Potential Defendants
Financial investigations constitute a preliminary action for filing a lawsuit against potential defendants. Such investigations may be very important for obtaining information about assets owned by defendants and the value of those assets, given the tendency of potential defendants to conceal their assets, so as to evade lawsuits against them. However, these investigations are very sensitive and may put the investigators at risk of being subjected to criminal trial if they act in violation of the law. In this article, a lawyer from our firm explains how to properly conduct economic investigations.
Our law firm, which has offices in Jerusalem and Tel Aviv, specializes in writ of execution law and in the various branches of civil law. We provide comprehensive legal assistance to individuals and businesses regarding issues such as representation of debtors before the courts and Writ of Execution registrars, requests to stop repossession or to have one asset repossessed in place of another, and so on.
When Are Financial Investigations to Locate the Assets and Value of Potential Defendants Needed?
What do you do when you wish to sue someone for various reasons (such as debt that they have accumulated or damage that they have caused, for example, due to a car accident or environmental nuisance) but the person whom you wish to sue attempts to evade payment by concealing their true economic situation? This is a real problem for the plaintiff: They do not know how much money they can sue for, since the defendants’ true level of economic affluence and ability to actually pay the amounts sued for is unclear. In such cases, there is a real need to take preliminary action before filing a lawsuit. First and foremost, the plaintiff should conduct a private economic investigation that will clarify the value and assets of the defendant. As explained below, it is very important to involve a lawyer when conducting the investigation.
How May Assets Be Hidden or Concealed?
Potential defendants who hide their true economic situation have various ways of doing this, such as establishing fictitious companies (also known as front organizations) to which they transfer money and assets that they own, or registering their own vehicles and assets in the name of friends or relatives. Some potential defendants open several bank accounts at various banks and branches (in Israel and abroad) to make it difficult for creditors to discover the full value of the assets. These are just a few ways in which potential defendants hide information about the full value of their assets.
What Tools Are Available for Conducting Economic Investigations to Locate the Assets and Value of Potential Defendants?
There are various ways of conducting economic investigations to locate assets. There are various systems that may be used to locate bank accounts that belong to potential defendants, companies that are registered in their name, and cancelled direct debits or returned cheques in their name. Economic investigations may also help to locate land assets, vehicles, and other assets that are owned by potential defendants (whether registered in their name or in the name of friends or relatives). The means of conducting economic investigations vary and depend on the objectives in each specific case.
Why Is It Important to Seek the Help of a Lawyer When Conducting Economic Investigations?
We often encounter clients who turn to us after having already conducted independent investigations themselves or via others. Unfortunately, these independent preliminary actions of theirs, or of others on their behalf, are performed in violation of the law. This may frustrate the chances of winning the lawsuit (sometimes due to the invalidity of the evidence that they obtained). Sometimes, in cases where the law forbids conducting economic investigations or a certain investigative act, independent investigations may even put the violators at risk of being subjected to trial and imprisonment.
The main advantage of conducting investigations via a lawyer who specializes in the field, or at least in coordination with a lawyer, is that doing so ensures conformance with the law. It also contributes to certainty regarding the ability to use the findings of the investigation as evidence in the actual lawsuit, and it advances transparency with the client. Due to the great sensitivity of such cases, it is recommended that you consult a lawyer who specializes in civil and writ of execution law before carrying out any action against potential defendants.
Financial investigations to Locate Assets and Asses the Value of Defendants – Contact a Civil Lawyer
Our firm is a one stop shop for those who are interested in conducting economic investigations on various matters. For any questions you may have regarding economic investigations, you are welcome to contact us and we will provide you with a lawyer who specializes in civil and writ of execution law. The lawyers at our offices in Jerusalem and Tel Aviv are available to help you with any need via the phone numbers and email address listed below.
:
:מאמרים מומלצים