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recently purchased goods

I have been out of Canada for 2 years, and since I have returned (summer 2005) I have been purchasing necessary household goods, clothes, etc (all under 10k), not from credit, but from my savings. I am a student. Now, I am being sued for approx. 100k, and cannot pay this amount and will go bankrupt in the next month or so. However, I need a car to commute to school and may purchase a modest one with the remainder of my savings (for 4-5k) in the near future, prior to going bankrupt.
All my possessions are within the amounts allowed. Can I do this? Is this allowed by the bankruptcy rules? Or will these purchases and the car have to be returned?
Thanks.

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One Response to “recently purchased goods”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

These types of transactions are not permitted. Essentially what you are doing is converting a non-exempt asset (the savings account) into exempt assets and I would expect your trustee to require you to repay all of the monies taken out of the savings account over the last little while. If you do not disclose this to your trustee and make the necessary provisions in the bankruptcy estate your creditors would likely pursue you for these funds and their costs of doing so. It will be important for you to review these transactions closely with a licensed trustee.