October 14th, 2011 by Questions

I have a TFSA worth $ 5000, i owe a friend $15000. My TFSA is invested in penny stock that will and has made my investment over 15000. We are going to do a consumer proposal very soon. If my investment goes up to what I owe my friend, will I be penalized for withdrawing and repaying him, it was for home renovation work, a cash job.

Posted from: Ontario


One Response to “Tfsa”

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

Yes, paying your friend would be a bad idea. It would be considered a fraudulent preference as you are paying off one of your creditors and not providing the same treatment to the general body of your creditors. So this is considered an offence, it would likely result in you not being eligible to have the proposal approved by the court. So don’t do it!

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