November 16th, 2010 by Questions
If I gift my car (2009 Corolla-fully paid) to a friend or family member just before I claim Bankruptcy – will this be problematic?
Posted from: Manitoba
November 17, 2010 at 9:27 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Gifting any type of property to someone else prior to filing a bankruptcy
would definately be problematic. The technical term is a transfer at Undervalue, it is a bankruptcy offense and will result in you being ineligible for automatic discharge.
Additionally your trustee will have to go to court, get an order for the transaction to be reversed, the vehicle seized and sold and the proceeds divided amoung your creditors. So as you can see this is a bad idea, anytime you are involved in trying to organize your finances in a manner that is detrimental to your creditors you will find are in violation with the legislation and have some fairly severe penalties attached.
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