Asset-stripping / shedding / diminishing/getting rid of? property of debtor facing bankruptcy

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apoziopeza

Senior Member
slovak
Hi,

Please advise what is the proper term to describe that the debtor is getting rid of its property before bankruptcy proceedings?

Thanks,

A.


Is it asset-stripping / shedding / diminishing/getting rid of?

Background - Legal alert for clients/creditors

Advise on what to do when the debtor is "getting rid of" its property prior to commencement of insolvency proceedings (to avoid payments); on manipulations and frauds in the course of proceedings, schemes used, signs of criminal activity of the bankrupt (i.e., insolvent debtor) and rights of creditors in proceedings.
 
  • dermott

    Senior Member
    B.E. via Australian English
    I'd've thought asset-stripping applied to the process whereby (unscrupulous) businesspeople buy ailing businesses, sell off individual assets at an overall profit (to themselves) before letting the business sink. As in a recent case in the UK.
     

    PaulQ

    Senior Member
    UK
    English - England
    I agree, but it is essentially the same action - removing valuable parts.
     

    PaulQ

    Senior Member
    UK
    English - England
    I see what you mean but there is sufficient context in the OP to be able to use "asset-stripping" without fear of ambiguity.

    "Advise on what to do when the debtor is asset-stripping (= stripping its assets from) its property prior to commencement of insolvency proceedings (to avoid payments); on manipulations and frauds in the course of proceedings, schemes used, signs of criminal activity of the bankrupt (i.e., insolvent debtor) and rights of creditors in proceedings."

    Edit to add:
    From the Caseron (Business Consultants) website: Don’t want your company anymore? What are your options? | Caseron Cloud Accounting
    Assets of any material value should be independently valued to ensure they are disposed of at current market or fair vale so the company directors are not seen as asset stripping.
     
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