15. How does Mexican law regulate a fraudulent conveyance of assets?

Like most countries that come from a Civil Law Tradition, Mexico's laws within each State provide for remedies against fraudulent conveyance of assets through the actio pauliana.

The Federal Civil Code -which most States have followed, provides that any transaction made by debtor to harm or with prejudice of his creditor can be annulled, if there is evidence that proves: 1) that debtor's insolvency resulted from such transaction, and 2) that the credit that originated the annulment request took place prior to the transaction. If the transaction was onerous, there has to be proof that the transaction was conducted in bad faith (fraud) by the parties involved. Creditor will be relieved from this burden of proof however, only in cases where debtor has sold goods (onerous transaction) following either a judgment or an attachment order (embargo) issued against him.

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