International Asset Recovery

A Brazilian company owes you USD 5 million. You’ve won an arbitration award or court judgment. But the debtor has vanished the money—assets are now in Miami, London, and the Cayman Islands. How do you recover?

International asset recovery is the art of locating hidden assets across borders and freezing them before they disappear. It requires coordination between courts and law enforcement in multiple countries, navigating different legal systems, and moving fast—because the moment a judgment debtor knows you’re coming, assets are moved or hidden.

This guide explains the mechanisms available to foreign creditors seeking to recover assets from Brazil and beyond. For contract enforcement preceding asset recovery, see cross-border contracts. For arbitration of commercial disputes, review international arbitration.

The Asset Recovery Roadmap

Phase 1: Locate Assets

• Identify where the debtor holds assets (bank accounts, real estate, investments, corporate interests)
• Use bank records, corporate filings, real estate registries
• May require court-ordered disclosure (discovery in US, disclosure in UK courts)

Phase 2: Freeze/Attach Assets

• Obtain a freezing order (injunction) from a court before judgment
• Serve the order on the bank/institution holding the asset
• Asset is frozen; cannot be moved or withdrawn
• Freezing orders work across borders under Hague Convention

Phase 3: Enforce Judgment/Award

• If arbitration award: Enforce in country where asset is located
• If court judgment: Enforce through exequatur (recognition) or through correspondent law firm
• Frozen asset becomes collateral for satisfaction of judgment

Phase 4: Execute & Distribute

• Once judgment is enforceable, seize the asset (bank transfer, real estate sale, liquidation)
• Distribute proceeds to creditors

---

Locating Assets: Discovery & Disclosure

In the US: Federal Court Discovery

If the debtor or assets are in the US, you can use federal discovery rules:

1. Interrogatories – Written questions the debtor must answer (include questions about assets, bank accounts, real estate, investments)
2. Document requests – Demand production of bank statements, deeds, corporate records
3. Depositions – Oral testimony under oath; can compel attendance
4. Subpoenas – Compel third parties (banks, accountants, brokers) to produce records

Cost: USD 10K–50K in attorney fees

Effectiveness: High; US courts have broad discovery powers and can compel witnesses

In England: Pre-action Disclosure

Similar to US discovery; English courts can order defendants to disclose assets early.

Mechanism: Norwich Pharmacal Order—used to compel disclosure from third parties (banks) about assets held in the defendant’s name

Cost: £5K–20K

Effectiveness: Very high; English courts are aggressive in freezing assets

In Brazil: Limited Disclosure

Brazilian courts have much more limited pre-judgment discovery than US/UK courts.

Mechanism: “Ação Preparatória” (preparatory action)

• Court can order debtor to disclose assets
• Enforcement is weak; debtor can ignore without immediate sanction
• Limited to identifying assets (not full discovery like US)

Alternative: Hire private investigators to locate assets

• Cost: R$5K–15K
• Can identify bank accounts, real estate, corporate interests
• Information from public registries (cartório for real estate, CNPJ registry for companies)

Best practice: Use US/UK discovery first (if possible); supplement with Brazilian investigation

Corporate Asset Identification

If debtor is a company:

• Check CNPJ registry (public; free) for corporate officers, partners, registered office
• Review tax filings (if available; vary by country)
• Search property registries for real estate holdings
• Check corporate filings in all jurisdictions where company operates
• Identify parent companies, subsidiaries, affiliates (assets may be hidden in related entities)

---

Freezing Orders (Asset Preservation Injunctions)

Once you’ve located assets, you can obtain a freezing order (injunction) preventing the debtor from moving them. These are extraordinarily powerful and available in US, UK, and EU courts.

US Freezing Orders (Temporary Restraining Orders / TROs)

What it does: Prohibits defendant from transferring assets; can attach bank accounts, freeze real estate sales

When issued: Before judgment (right after filing suit) or after judgment

Requirements:

• Likelihood of success on merits
• Irreparable harm (money judgment alone not enough; must show assets will be dissipated)
• Balance of equities favors freezing
• Security bond (usually 1–2x the frozen amount) posted by creditor to compensate if order was wrongful

Timeline: Can be granted within hours (emergency ex parte hearing) or days (after defendant is heard)

Cost: USD 5K–30K attorney fees + court bond

Effectiveness: Extremely high; US courts enforce TROs aggressively

Example clause:

"Defendant is restrained from:
(1) Transferring, pledging, encumbering, or disposing
    of any assets (real property, bank accounts, securities)
(2) Withdrawing or transferring funds from accounts at [Bank]
(3) Closing or liquidating investments
(4) Making wire transfers or international payments
Violation is contempt of court (criminal penalty)."

UK Freezing Orders (Mareva Injunctions)

UK courts issue “Mareva” freezing orders—globally recognized as strongest asset freezes available.

What makes them special:

• Can freeze assets anywhere in the world, not just in UK
• Very broad language (covers all assets, worldwide)
• Survives beyond UK jurisdiction (recognized by US, EU, Singapore courts)

Requirements:

• Strong prima facie case (higher threshold than US)
• Serious risk of dissipation
• Balance of justice favors freezing
• Undertaking in damages (insurance bond covering defendant’s losses)

Timeline: 7–14 days if urgent; 2–4 weeks if defendant can be heard

Cost: £10K–40K attorney fees + insurance bond

Effectiveness: Highest in world; even global forensic accountants fear Mareva orders

Advantage: Once issued, asset holders worldwide recognize and comply with the order

Brazilian Freezing Orders (Medidas Cautelares)

Brazilian courts can issue “cautelar” orders freezing assets, but they’re weaker than US/UK equivalents:

Mechanism: “Ação Cautelar” (preliminary injunction action)

• Request judge to freeze assets pending main dispute
• Judge must find “fumaça do bom direito” (smoke of good right) + danger of irreparable damage
• Freezing is typically narrow (specific bank account or property)

Timeline: 10–30 days

Cost: R$3K–10K

Effectiveness: Moderate; Brazilian judges are more cautious than US/UK courts

Limitation: Order only effective in Brazil; foreign banks may not recognize it

Better path: Obtain US or UK freezing order first; use Brazilian order as supplementary measure

---

Cross-Border Asset Recovery Mechanisms

1. Hague Convention on Taking Evidence (1970)

Allows US/UK courts to compel evidence-taking in Brazil and other signatory countries.

Process:

1. US federal judge issues “letter of request” (formal request to Brazilian court)
2. Letter is served through diplomatic channels (State Department)
3. Brazilian court conducts examination/document production
4. Results returned to US court

Cost: USD 3K–10K Timeline: 3–6 months Effectiveness: Good for obtaining testimony and documents; less useful for asset identification (Brazil doesn’t have broad discovery)

2. Mutual Legal Assistance Treaties (MLATs)

US and Brazil have a MLAT for criminal matters (asset forfeiture, money laundering). Less useful for civil disputes, but available if criminal issues exist (fraud, bribery).

Cost: Varies; may be free (government-funded) Timeline: 6–12 months Effectiveness: High if criminal conduct involved

3. Letters Rogatory (Exhortos)

If you have a US judgment and need to enforce it in Brazil, you send a “letter rogatory” to the Brazilian court.

Process:

1. Brazilian court authenticates the US judgment (exequatur)
2. Once authenticated, judgment is enforceable in Brazil like a Brazilian judgment
3. Brazilian court then executes (seizes assets)

Cost: R$3K–10K (Brazilian lawyer) + US attorney fees Timeline: 6–12 months for exequatur + 3–6 months for execution Effectiveness: Good; once judgment is authenticated, seizure is efficient

Better path: If you have arbitration award, enforcement is faster (New York Convention—no exequatur needed; direct enforcement)

4. US-Brazil Judicial Cooperation

US and Brazil have increasing cooperation on:

• Extradition (criminal)
• Asset recovery (if crime involved)
• Rogatory letters (increasingly recognized)
• Depositions of Brazilian witnesses (through diplomatic channels)

Use case: If debtor committed fraud/crime, can pursue criminal asset forfeiture faster than civil collection

---

Asset Recovery Strategies by Jurisdiction

Assets in the US

Best approach: US federal court litigation + freezing order

Timeline: Injunction within days; judgment within 1–2 years; enforcement within 6 months

Mechanisms:

• TRO/preliminary injunction (asset freeze)
• Garnishment of bank accounts
• Levy on real property
• Charging order on business interests (LLC/partnership)

Cost: USD 50K–150K attorney fees + court costs

Success rate: 85%+ (US courts are effective at enforcement)

Assets in the UK

Best approach: UK court litigation + Mareva freezing order

Timeline: Mareva order within 2–4 weeks; judgment within 1–2 years; enforcement within 3–6 months

Mechanisms:

• Mareva injunction (global asset freeze)
• Norwich Pharmacal order (compel banks to disclose accounts)
• Contempt proceedings against defendant (criminal penalties for non-compliance)

Cost: £30K–100K attorney fees + insurance bond

Success rate: 90%+ (UK courts are world-renowned for asset recovery)

Assets in Brazil

Best approach: Brazilian court litigation + preparatory freezing order OR arbitration award + enforcement

Timeline: Freezing order 2–4 weeks; judgment 3–5+ years; enforcement 6–12 months

Mechanisms:

• Medida cautelar (preliminary injunction)
• Ação de execução (execution of judgment/award)
• Central Bank cooperation (if funds transfer involved)

Cost: R$10K–30K Brazilian attorney fees

Success rate: 60–70% (slower but effective for real estate; harder for liquid assets)

Assets Hidden in Offshore Jurisdictions

Best approach: US/UK court action + tracing to beneficial owner

Timeline: 1–3 years

Mechanisms:

• Beneficial ownership disclosure (LLCs, trusts may be compelled to reveal owner)
• Bank secrecy piercing (increasingly difficult; most jurisdictions now share data)
• Piercing corporate veil (show ownership is sham to hide assets)

Cost: USD 100K–300K

Success rate: 40–60% (depends on jurisdiction, cooperation, evidence of fraud)

---

Working with Correspondent Firms

For multi-jurisdictional asset recovery, you’ll need lawyers in multiple countries:

Brazil

• Licensed to practice in Brazilian courts
• Can obtain freezing orders and execute judgments
• Handle communication with Central Bank (if currency transfer involved)
• Knowledge of local bankruptcy laws (debtors may file insolvency to stall recovery)

United States

• Federal court litigation (asset freeze, judgment, enforcement)
• Depositions of Brazilian witnesses (via letters of request)
• Enforcement of US judgment against Brazilian debtor’s US assets

United Kingdom

• Mareva injunctions (global asset freeze)
• Norwich Pharmacal orders (asset disclosure)
• Enforcement against UK/EU assets

Offshore Jurisdictions (Cayman Islands, BVI, etc.)

• Specialists in piercing corporate veils
• Beneficial ownership disclosure
• Asset tracing

Cost coordination: Budget USD 50K–300K total across all jurisdictions; rates vary significantly

Coordination tips:

• Use one lead counsel (US or UK typically) to coordinate strategy
• Ensure all counsel have access to same documents/evidence
• Prioritize freezing orders in high-asset countries first
• Plan sequential enforcement (freeze in US first, then Brazil, then Europe)

---

Special Issue: Central Bank Cooperation (Brazil)

If the debtor’s assets are moving through the Brazilian Central Bank (Banco Central do Brasil)—e.g., international wire transfers, currency exchange—the Central Bank may assist in tracing and freezing:

Mechanism: Cooperação com Banco Central

• Brazilian courts can order Central Bank to track wire transfers
• Central Bank can freeze accounts if informed of court order
• Used in high-value international disputes

Requirements:

• Valid Brazilian court order (freezing order or judgment)
• Clear identification of account/transaction
• Proof of fraud or crime (higher bar than civil dispute alone)

Timeline: 2–4 weeks once court order is issued

Cost: Included in Brazilian lawyer fees

Effectiveness: Very high for identifying money movement; less effective if debtor uses cryptocurrency or informal transfer mechanisms

---

Avoiding Asset Recovery Pitfalls

1. Waiting too long to freeze

   • Every day you wait, assets move. File for freezing order immediately upon discovery of debtor’s wrongdoing.
   • Statute of limitations doesn’t save you if assets are gone.

2. Underestimating costs

   • Asset recovery is expensive (USD 100K–500K+). Budget accordingly.
   • Don’t pursue if debtor’s known assets are less than recovery costs.

3. Targeting wrong jurisdiction

   • If debtor has no US assets, US litigation is wasted cost. Pursue UK/Brazil first.
   • Map asset locations before choosing courts.

4. Ignoring corporate structure

   • Debtor may use trusts, shell companies, family transfers to hide assets.
   • Hire forensic accountants early to trace beneficial ownership.

5. Not moving on criminal angle

   • If debtor committed fraud, pursue criminal asset forfeiture (faster, government-funded).
   • Don’t rely solely on civil recovery.

---

Why ZS Advogados

At ZS Advogados, we’ve coordinated international asset recovery across the US, Brazil, UK, and offshore jurisdictions. We’ve worked with forensic accountants, bank examiners, and international counsel to locate and freeze assets before they disappeared.

Our approach: Fast action + multi-jurisdictional coordination.

The moment you discover a judgment debtor is moving assets, we move. We file freezing orders in the US/UK while simultaneously working with Brazilian counsel to initiate recovery in Brazil. We coordinate discovery across countries, compel bank disclosures, and trace funds.

We’ve recovered millions for clients—from obtaining Mareva injunctions in London to executing on Brazilian real estate through coordinated court orders.

Don’t wait. Call us immediately when asset recovery becomes necessary. Speed is everything.