Yes. The Civil Code gives creditors an avoidance action: the court declares that a transaction prejudicing the creditor is legally ineffective against them. The transfer is not cancelled and the assets do not return to the debtor, but the creditor can enforce directly against the assets transferred as though the transfer had never occurred. For transfers to close persons, the law significantly eases the creditor's evidential burden; the action must be brought within three years of the transaction.
The scenario is often the same: while a claim was being litigated or approaching its due date, the house passed to the children, the car to the wife and the company interest to the brother. The enforcement officer then finds a debtor with no assets. The Civil Code (Act No. 40/1964 Coll.) addresses this through the right to challenge legal transactions under Sections 42a and 42b.
The transfer remains valid but becomes ineffective against you
A creditor may seek a court declaration that the debtor’s legal transactions under paragraphs 2 to 5, where they prejudice satisfaction of the creditor’s enforceable claim, are legally ineffective against that creditor.
— Section 42a(1) of the Civil Code (unofficial English translation)
The key words are “against that creditor”. The gift or sale agreement remains valid, the recipient remains the owner, and a successful action benefits no one else. Only for you as the claimant creditor is the transfer treated as though it had never occurred, which is precisely what is needed for enforcement.
This distinguishes avoidance from absolute invalidity. An invalid transaction is defective from the outset, for example a forged agreement, and ownership then reverts; we discuss that situation in fraudulent property transfers. By contrast, an avoidance action can challenge only a valid transaction by which the debtor disposed of assets at your expense. If the transaction is invalid, the court will dismiss the avoidance action, so choosing the right type of claim at the outset matters.
What must be proved and why family offers little protection
A transaction can be challenged if the debtor entered into it in the last three years intending to prejudice a creditor, where the other party must have known of that intention (Section 42a(2)). For transactions between the debtor and close persons, however, that intention does not have to be proved: the close person must show that they could not have known of the debtor’s intention to prejudice the creditor even with due care. Paragraphs 3 and 4 extend the same regime to companies linked to the debtor through ownership or personnel, so transferring assets to a “family limited company” does not stop the creditor.
Your claim must be enforceable, meaning capable of being successfully pursued in court. You do not yet need a final judgment against the debtor when filing the avoidance action; the two proceedings can then run alongside each other.
How a successful action is used
A legal transaction successfully challenged by a creditor is legally ineffective, and the creditor may seek satisfaction of their claim from the assets that left the debtor’s estate through the challengeable transaction; where this is not possible, the creditor is entitled to compensation from the person who benefited from that transaction.
— Section 42b(4) of the Civil Code (unofficial English translation)
The action is brought against the person who benefited from the transaction, usually the recipient (Section 42b(2)). With the judgment, you can then enforce against the transferred asset even though it belongs to someone else. If the recipient has meanwhile sold or consumed it, monetary compensation remains available against them.
Time runs from the transfer, not from when you discover it
Transactions from the last three years may be challenged; once that period expires, the right to challenge them is extinguished. The period runs from the transaction, not from when you learned of it, so it is worth monitoring the debtor’s assets regularly. Property transfers appear on the title record; if assets disappeared from a company that subsequently went bankrupt, see also claims against managing directors.
How we can help
We check where the assets went and whether the individual transfers can be challenged, followed by debt recovery. We prepare the avoidance action and conduct the proceedings through our court representation service, then use the outcome in enforcement proceedings.
The sooner you identify the transfers, the more of the three-year window remains for preparing the action.
This answer provides general information on the law as at 29 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
