done4

November 28th, 2011 by Questions

Family company, I’m diagnosis as a pathological gambler by medical specialist, I was removed from company as President, all shares given to wife. Do I still have to claim any assets from when I was with the company. I had not choice in leaving the company. I want to get out of debt, I’ve been told the Trustees do not accept gambling debts

Posted from: Alberta

Questions

One Response to “done4”


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

This is a very complicated issue and one you are best to discuss directly with a local trustee. But what happens is that this transfer of shares has to be reviewed if the value of the consideration given (i.e. the money you received) was conspicuously different than the fair market value of the shares. So the shares would be valued, if the value of those shares is significantly different than the the money you were provided in compensation, then a court application would be made as part of the bankruptcy and the court will decide how much has to be paid in as a result of this “transfer at undervalue.” With a strong likelihood that a judgement could be granted against you and the company for the difference between the two. Clearly this is a complicated issue and hence why you need to discuss it with a trustee.

As for gambling debts, they are no different than any other debt, so if you owe the money it needs to be listed and technically as long as it doesn’t fall into one of the debts that are not released by bankruptcy, then you should be fine. The difficult is where you have gambling debts to individuals who are not concerned with how the law works and may take it into their own hands to effect collection (i.e. physical violence etc.). If you are dealing with anyone like that you need to go to the police as that is illegal!

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