Your debtor swears the company is broke, yet its owner just posted photos from a new showroom. Technology has made it easier to hide money, but even easier to find it. Artificial intelligence (AI) tools now sift public records and online activity faster than any investigator. Here is how that evidence surfaces and how California law can turn it into leverage.
Skip tracing for hidden assets
Skip tracing means locating a person or business that has vanished. AI platforms speed this up by cross-referencing public filings and lawfully accessible databases, such as commercial leases, UCC statements, recorded property documents and import shipping records. A warehouse lease signed by a relative or a forklift financed under a new name can point to inventory the debtor never disclosed. In commercial debt collection cases, these leads help show where a levy is most likely to land.
Social media ties to new businesses
Physical assets are only part of the picture. Pattern analysis tools scan public posts for shared addresses, phone numbers, logos and officers. When a “new” company runs from the old location with the same owner, that link matters.
California’s Uniform Voidable Transactions Act lists factors courts weigh in deciding whether a transfer aimed to defeat creditors. These include transfers to insiders and a debtor keeping control of property after giving it away. No single factor proves fraud, but several together can support a claim to undo the transfer.
Lifestyle evidence against poverty claims
Once you have a judgment, this evidence can go to work under oath. A court-ordered debtor’s examination requires the debtor to answer questions about income, accounts and property. Photos of luxury cars or overseas trips give you pointed questions that are hard to dodge. You can also examine third parties holding the debtor’s assets. However, you generally must wait at least 120 days before examining the same debtor again unless you can show good cause.
Limits on digital investigations
Digital investigations have legal and ethical limits. California Rule of Professional Conduct 4.2 bars attorneys from contacting a represented party about the case without counsel’s consent, and a friend request can count as that contact.
Pretexting is off-limits. Creating a fake profile or using a false identity to view a debtor’s private accounts can violate California Rules of Professional Conduct 4.1 and 8.4(c), which prohibit attorneys from making false statements and engaging in deception. Those rules also apply when an investigator does the work for the attorney. Evidence gathered this way can also backfire in court. Stick to what is publicly visible or obtainable through formal discovery.
Data access is also shrinking. Since Aug. 1, 2026, registered data brokers must process California residents’ deletion requests under the Delete Act.
Finally, AI output is a lead, not proof. Before a screenshot or social media post can be used as evidence, California law requires showing it is what it claims to be. Capture the date, URL and account details when you save it, and verify AI findings against original records before they reach a courtroom.
Turning digital leads into recovery
A claim of poverty is only as strong as the evidence against it. Start by recording what you know about the debtor’s locations, vehicles, partners and online presence before profiles get scrubbed.
Early evidence can also protect your recovery before you have a judgment. In commercial cases, California law allows a creditor to seek a prejudgment writ of attachment, which freezes the debtor’s assets while the case is pending. If the debtor appears to be hiding or moving assets, a court can issue the writ without advance notice to the debtor, so the money doesn’t disappear before a hearing. Digital findings showing a recent transfer or a new business with the same owner can help make that showing. The same evidence can later support a claim to undo a voidable transfer.
Hidden money still leaves a trail, and following it early strengthens your position.
This article is for general informational purposes only and is not intended as legal advice. Every collection matter depends on its own facts, so please contact McClaren & Slates to speak with an experienced attorney about your commercial collection matter.