Buying a car for my sister

If you do she may not be able to keep this car. There is a section of the legislation that is referred to as After Acquired Property that stipulates where property of value devolves on a bankrupt prior to discharge, this property will need to be distributed among the creditors if it is over and above the exemptions available in the province. In the province of Alberta you are only permitted to have a vehicle of up to $5,000 claimed as exempt. So in your example the car would likely be sold by her trustee, she would retain the first $5,000 and the remainder of the proceeds would be distributed up among her unsecured creditors are prescribed by the Bankruptcy and Insolvency Act.