The Consumer Debt Clearance Statute Article 20

Unless otherwise provided for in this Statute, the following acts of the debtor may be revoked by the supervisor or the administrator: 1. Any gratuitous act of the debtor within 2 years before the court's ruling on the initiation of the rehabilitation or liquidation process, which act is likely prejudicial to the rights of creditors, 2. Any non-gratuitous act of the debtor within 2 years before the court's ruling on the initiation of the rehabilitation or liquidation process, which act is likely to be prejudicial to the rights of creditors, if the debtor knew of the likelihood of prejudice at the time of doing that act and a beneficiary of that act had knowledge of the act knew of the circumstance at the time of receiving the benefit. 3. Any provision of security, repayment of debts or other act of the debtor within 6 months before the court's ruling on the initiation of the rehabilitation or liquidation process, which act is likely prejudicial to the rights of creditors, if the likelihood of prejudice to the rights of creditors is known to the beneficiaries when they receive their benefits. 4. Any provision of security, repayment of debts or other act of the debtors within 6 months before the court's ruling on the initiation of the rehabilitation or liquidation process, which is likely prejudicial to the rights of creditors, if such act is not his/her obligation or the obligation has not been due for repayment. Any non-gratuitous act between the debtor and his/her spouse, lineal relative or family member, which involves the debtor's disposition of his/her property at a price lower than half of market price shall be deemed a gratuitous act. If the debtor performs any act under subparagraph 3 of paragraph 1 of this article with his/her spouse, lineal relative or family member, it shall be presumed that the beneficiary knew such act is likely prejudicial to rights of creditors at the time he/she received the benefit. If the security provided under Subparagraph 3 of Paragraph 1 has been undertaken and notarized earlier than 6 months before the date of the court's ruling on the initiation of the rehabilitation or liquidation process ruled by the court, such security may not be revoked. The right of revocation under paragraph 1 of this article s extinguished by prescription if it is not exercised within one year from the day following the court's ruling on the initiation of the rehabilitation or liquidation process. If the debtor is under any obligation of performance due to a revocable act, even if the right of revocation is extinguished due to the preceding paragraph, the debtor or the administrator may refuse the performance. The provisions of paragraphs 2 and 3 of this article shall apply mutatis mutandis to the non-gratuitous acts done between the debtor and the person specified in Article 4 and their spouses, lineal relatives or family members.