No asset lawsuit

No asset lawsuit – this term is used in the sphere of Civil Law, where refers to a court case, which can be entered in local court and won by the claimant. But the defendant of the case/ i.e. the judgment debtor does not have any available assets, neither raising capital to satisfy the judgment creditor in eventual execution case. This is why such “no asset lawsuit” would  be a pointless lawsuit in many legal systems where allowed local corporate bodies to have no capital and their managers to hold no liability to creditors for the actions they undertake (contracts their sign). In the years 2008-2013 there were many examples of court cases, won in Bulgaria by foreign property investors against local real estate developers, who turned to be only empty companies without any assets, raising capital of 2-5 levs only, or owning only the property which is a subject of dispute, and this property could be already mortgaged in favor of a local bank long time ago. It is advisable to check in advance the current legal standing of a company before entering into a contract with them, respectively to hire a Bulgarian lawyer to investigate for you against fee the available assets of the debtor before entering court claim, resp. paying 4% court tax and lawyer’s fees.

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