A favorable court ruling and a judgment ordering debt collection do not yet guarantee the recovery of funds. Creditors often face a situation where, during the enforcement proceedings, it turns out that the debtor’s assets have suddenly “disappeared.”
The reason for this is fraudulent transactions.

What does this mean in simple terms?
It is a contract (such as a sale, gift, etc.) that the debtor enters into not for a legitimate business purpose, but with a single goal—to remove their assets from reach and prevent debt collection. Although you won’t find the term “fraudulent” in the Civil Code, Ukrainian courts view such transactions as an abuse of rights and, under certain conditions, declare them invalid.

How can you spot such a scheme? Here are a few key signs to look out for:
Timing matters: The transaction is entered into after the debt arises or during legal proceedings.
 Family ties: The property is “sold” to relatives, business partners, or other related parties.
Suspicious price: The asset is sold at a price significantly below market value or is given away for free.
 Purpose: The parties’ actions are clearly aimed not at making a profit, but at evading their obligations.

How does this work in practice? Let’s look at an example.
Imagine that an IT company is due to receive a substantial debt from its counterparty based on a court ruling. When it comes time to enforce the judgment, it turns out that the debtor’s only liquid asset—a large country house—was “sold” to his cousin a week before the court’s decision was issued.

What should be done in such a situation? File a lawsuit to have this purchase and sale agreement declared invalid.

What needs to be proven in court?
Relationship between the parties: Demonstrate the family ties between the debtor and the buyer.
Unrealistic price: Confirm that the house was sold at a price that is clearly below market value.
Fictitious payment: Prove that no actual transfer of funds took place.
Intent: Provide evidence that the sole purpose of the transaction was to evade enforcement of the court’s decision.

The expected outcome should be as follows: the court agrees with the arguments, declares the contract invalid, and returns the house to the debtor’s ownership. After that, the creditor can foreclose on the asset and finally recover their funds.

Do not let unscrupulous debtors manipulate the law. There are effective legal tools to protect the creditor’s rights. The key is to act professionally and promptly.
If you are facing a similar problem and need qualified representation to protect your interests, the Barristers Commercial team is ready to assist you.