Legal Definitions - revocatory action

Definition: A revocatory action is a legal action taken by a creditor to cancel a contract that a debtor has entered into, which would make the debtor more insolvent.

For example, if a debtor owes money to a creditor and then enters into a contract to sell their house to a family member for much less than its value, the creditor may file a revocatory action to cancel the sale and prevent the debtor from becoming more insolvent.

Another example could be if a debtor transfers assets to a friend or family member to avoid paying their debts, a creditor may file a revocatory action to cancel the transfer and recover the assets to pay off the debt.