Assignment of Claims and Fraudulent Transfers under Thai Law: 
Expanding Creditor Protection in 2026

Fraudulent transfers—transactions made by a debtor to prejudice creditors—remain a critical issue in Thai civil law. Section 237 of the Thai Civil and Commercial Code (CCC) provides a creditor with a powerful remedy — the right to revoke the fraudulent transfers made by the debtor. 

Back in 2012, in the Supreme Court Decision No.15037/2555, the Supreme Court held that a creditor has the right to cancel the fraudulent transfer only if such creditor held the status of creditor over the debtor at the time that the juristic act was made. 

However, in 2025, the new Supreme Court Decision No. 3107/2568 introduced a significant development in the protection of creditors’ rights. This decision addresses a previously debated issue i.e., can an assignee of a claim (a new creditor) challenge a fraudulent transfer that occurred before the assignment? 

Key Facts

• The debtor (Defendant No. 1) transferred land to a third party (Defendant No. 3).
• At the time of the transfer, the plaintiff was not yet a creditor of the debtor.
• Subsequently, the plaintiff acquired the claim (through an assignment of rights) from the original creditor.
• The plaintiff (i.e., new creditor) then sought to revoke the land transfer by exercising the right under Section 237 of the CCC, claiming that the transfer of the land was a fraudulent juristic act made against him.

Legal Issue

The legal issue turned on whether the plaintiff—who became a creditor only after the impugned transaction—had standing to bring a revocation action. That is whether the right to revoke a fraudulent transfer under Section 237 of the CCC extends to assignees of claims who become creditors afterward. 

Ruling

The Supreme Court held that an assignee of a claim acquires the status of a creditor and is entitled to the same legal protections as the original creditor, including the right to revoke fraudulent juristic acts.

In essence, the plaintiff, upon receiving the assignment, steps into the shoes of the original creditor. Therefore, the right to challenge a fraudulent transfer is not limited to creditors existing at the time of the transaction. It also extends to subsequent creditors who derive their rights through assignment.

Legal Reasoning

The Court’s reasoning rests on several important principles:

1. Nature of assignment of claims

An assignment transfers not only the claim, but also its legal rights and remedies provided that the assignment was made in accordance with the law. Thus, if the original creditor has the right to revoke any fraudulent act, the new creditor who was assigned of claims will also have the same right. 

2. Purpose of Section 237 of the Thai Civil and Commercial Code

Section 237 of the CCC is designed to protect creditors from debtor misconduct, particularly where assets are dissipated to avoid repayment. Limiting this protection only to creditors existing at the time of the fraudulent act would encourage debtors to evade liability and reduce the effectiveness of assignment as a commercial tool.

3. Continuity of creditor status

The Court emphasized that an assignee is not a new creditor in substance, but rather a legal successor to the original creditor’s position. Thus, the relevant inquiry is not when the assignee became a creditor, but whether:

• The original creditor had the right to challenge the transaction; and
• That right was validly transferred.

Key Takeaways

This Supreme Court Judgment establishes several important legal principles:

1. Expanded standing under Section 237 of the Thai Civil and Commercial Code

The right to revoke fraudulent transfers extends to assignees of claims, not just original creditors. This significantly enhances creditor protection by ensuring that rights of enforcement are preserved even after a claim is transferred, preventing debtors from exploiting technical limitations on standing.

2. Strengthened assignment regime

Assignments of claims in Thailand now carry clearer assurance that all enforcement rights transfer together with the claim. As a result, creditors and assignees can rely on the full bundle of legal remedies, making assigned claims more secure, enforceable, and commercially valuable.

3. Extend creditor’s protection

Debtors cannot escape liability simply by transferring assets before a claim is assigned. This closes a critical loophole, ensuring that creditors are protected against pre-emptive asset dissipation and that fraudulent conduct cannot defeat legitimate claims.

4. Commercial certainty

The ruling enhances confidence in debt trading, factoring, and other financial transactions involving assigned claims. By reinforcing enforceability and reducing legal uncertainty, the decision strengthens creditor confidence and promotes a more robust and reliable credit market in Thailand.

Comparative Insight

The Court’s approach aligns with broader legal principles seen in other jurisdictions, where assignees generally inherit the full bundle of rights attached to a claim. It also reflects a trend in Thai jurisprudence toward substance over form, ensuring that legal mechanisms cannot be exploited to defeat legitimate creditor interests.

How Our Firm Can Help

Navigating fraudulent transfer claims and assignments of rights requires both technical legal expertise and strategic enforcement planning. Uniquely, our firm combines legal capabilities with a strong background in asset tracing and investigation, having evolved from a private investigation practice. This dual capability enables us to approach creditor enforcement with both legal precision and investigative depth—an advantage in uncovering concealed or dissipated assets.

We provide comprehensive support to creditors, investors, and businesses in the following areas:

1. Fraudulent transfer litigation

We advise and represent clients in bringing actions against fraudulent transfers, including:

• Assessing whether a transaction qualifies as a fraudulent juristic act
• Gathering and presenting evidence of intent to prejudice creditors
• Seeking court orders to revoke asset transfers and restore the debtor’s estate

Our investigative background enhances our ability to identify suspicious transaction patterns and uncover hidden connections between parties, strengthening litigation strategy and evidentiary support.

2. Assignment of claims advisory

We assist clients in structuring and executing assignments to ensure full legal protection by:

• Drafting robust assignment agreements
• Conducting due diligence on underlying claims and debtor risks
• Advising on the transfer of ancillary enforcement rights, including revocation claims

By integrating legal and investigative insights, we help clients assess the real recoverability of assigned claims, not just their legal validity.

3. Asset tracing and recovery

Asset tracing is a core strength of our firm. Drawing from our origins as a private investigation firm, we offer:

• In-depth investigation of asset movements, nominee structures, and concealed ownership
• Identification of asset trails
• Strategic coordination with litigation and enforcement teams
• Investigating asset movements and nominee arrangements
• Developing strategies to maximize recovery

4. Strategic enforcement planning

We help clients take a proactive approach to debt recovery:

• Evaluating enforcement options before and after assignment
• Coordinating multi-party creditor actions
• Advising on risk mitigation in commercial transactions

Our combined legal and investigative approach enables us to design enforcement strategies grounded in both legal rights and practical asset visibility, ensuring more effective outcomes.