October 30th, 2009 by Questions
Can I give my sister who` is in bankruptcy (14 months ago) a car that is worth $10,000.00 as a gift.
Posted from: Alberta
October 31, 2009 at 10:43 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
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.
Log in to Reply
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.