What constitutes an asset or right?
Real property, vehicles, accounts, savings, social-benefit rights, shares, equipment, amounts owed to the individual, inheritance rights, and existing or potential claims should be examined. Even property not registered in the individual's name may require explanation if the individual claims an interest.
Disclosure precedes realization
The duty to disclose does not depend on the individual's view that an asset is protected or worthless. Full disclosure comes first; value, ownership, liens, exemptions, and economic utility are then examined.
How is realization evaluated?
Realization is not a technical decision. The legal interest, net value after debt and expense, impact on the individual and family, available alternatives, and rules governing the particular asset are considered.
Transfers to relatives before the proceeding
A sale, gift, or transfer made before insolvency may be reviewed. Agreements, proof of payment, and the business rationale should be preserved. Concealment or artificial registration may impair the proceeding.
Concluding point
Full transparency does not mean every asset will be realized. It permits the correct legal review and a properly supported solution.
Principal legal sources
- Insolvency and Economic Rehabilitation Law, 5778-2018.
- Insolvency and Economic Rehabilitation Regulations, 5779-2019.