The Legal Tool “Deposition of Assets” for Debtors & Creditors

n the world of real estate 🌍
Whether you’re an investor,
a homeowner, a lessee‑buyer of a car,
or even an ordinary person
who borrowed money from a friend.
.
One thing that cannot be escaped is “debt”
And debt often marches hand in hand with the word “default”
When payment time comes
but the creditor refuses
or doesn’t know whom to pay.
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Which mostly happens in cases of mortgage/possession contracts
The financier aims to seize the asset used as collateral from the outset
so they find ways to evade accepting payment
In order to claim the debtor is in default.
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The big question is:
How can we avoid becoming a “defaulting party”
unintentionally?
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The answer is:
The law has a tool called “Deposition of Assets” 📌
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#What is Deposition of Assets?

Deposition of assets is a legal way of paying debt
when the payment faces obstacles
such as the creditor refuses to accept payment,
or cannot be found,
or several people claim to be the creditor for the same debt. mkclegal.com+2thanulegal.com+2
.
The debtor can place money in cash
or assets that are the subject of the debt
at the Execution Office (สำนักงานบังคับคดี)
The result: the debtor is considered to have paid the debt
Doesn’t get marked as default
No interest or penal charges accrue
And the creditor can no longer file enforcement proceedings. mkclegal.com+1
.

#Why Deposition of Assets exists

• The creditor refuses to accept the payment, although the debtor brings it as per contract

• The creditor is unable to receive the payment (out of town, abroad, deceased with disputed heirs)

• The debtor cannot clearly identify who the actual creditor is (e.g., after an assignment of rights)
  .
  In short: The law designed this mechanism to “protect a debtor who intends to pay, but is prevented from doing so”.
  .

#What assets can or cannot be deposited

Assets that can be deposited:

• Cash

• Cashier’s check

• Assets which are the subject of the debt: e.g., car, jewellery, gold, gems
  .
  Assets that cannot be deposited:

• Buildings, houses, hotels, factories, or immovable assets

• Assets that deteriorate quickly or have special characteristics making storage inconvenient
  .

#Procedure for the debtor (the depositor)

If you are the one depositing assets, you must:

1. Write an application for deposition (legal form)

2. Present ID card or government‑issued photo evidence

3. If you appoint an agent: include power of attorney + copy of IDs of both parties

4. If depositing money: must be banknotes or cashier’s checks not older than 1 month

5. Pay the fee/expenses (minimum e.g., 300 THB)
   .

#Procedure for the creditor (the recipient)

If you are the creditor receiving the asset:

1. Write application to receive asset (legal form)

2. Present ID card or government photo ID

3. If via agent: include valid power of attorney

4. If the asset is money: apply within 1 month

5. If it is some other asset: must provide evidence to receive handover
   .

#Effect of Deposition

• The debtor is freed from the debt immediately

• Not considered defaulting

• No interest or penalty after the date of deposition

• The creditor retains the right to claim the asset deposited within 10 years; if exceeded, the right is extinguished. mkclegal.com+1
  .

#Withdrawing or Claiming the Deposited Asset

The debtor may withdraw the deposited asset unless:

1. The debtor expresses intent to give up the right to withdraw

2. The creditor has declared to accept the asset

3. The deposition was by court order

4. The debtor is under bankruptcy proceedings

5. The asset was deposited for purposes required by law
   .

#Who has the right to deposit?

1. The debtor or contracting party

2. A person authorized via power of attorney

3. A third party willing to pay instead
   .
   Deposition of assets is the mechanism by which both debtor survives and creditor retains rights
   .
   It’s the middle path
   which prevents debt from turning into a major drama
   doesn’t allow the debtor to be unfairly branded “in default”
   and doesn’t allow the creditor to dodge saying
   “I want to receive payment but I couldn’t find you”
   .
   Interesting fact:
   Most people hardly know about this right
   Even though it can be a life‑saving tool
   on the day you intend to pay
   but unintentionally end up in default.
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   Join the discussion at
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