bankruptcy and the impact on assets

November 4th, 2010 by Questions

My credit card dept is 60,000 dollars. Plus I have a mortage on my home of 300,000.
I am not making enough money at this time and have not for a while. I own a lot worth 30,000. Will they take this from me.
I owe my son 40,000 . I was going to sell the property and give him the money.

Posted from: Ontario

Questions

One Response to “bankruptcy and the impact on assets”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If you own a second property and file a bankruptcy then this property would be lost as part of the bankruptcy. It would be sold by the trustee and the proceeds distributed amoung your creditors.

In terms of selling it prior to bankruptcy and using the proceeds to pay your son. This would be a bad idea, it is considered a fraudulent preference, which is an offense under the Bankruptcy and Insolvency Act. So the net result is that the trustee would have to get a court order for your son to pay the proceeds from the sale back and because you did something inappropriate you would no longer be eligible for an automatic discharge from your debts.

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.)