Bankruptcy in canada , assets are hidden in overseas
August 7th, 2006 by Questions
Person who declared bankruptcy in canada has several assets in overseas country with which Canada doesn’t have a social assistance agrement. He definitly hid his assets and wants to get away, trustee’s position is that they can not deal with it since this is a costly matter for them to prove the hidden assets. Even if one of the creditors offered free investigation it appears trustee will let it go. It means this crook will manage to declare buncrupcy while he is rich by using the canadian generous system at a cost of tax payers money. How can we prevent this to happen ?
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August 08, 2006 at 10:49 am, A licensed trustee said:
If you are a creditor of the bankrupt you have the right to ask the trustee (in writing) to pursue the assets. The trustee has the right to decline unless you guarantee their costs. If the trustee declines, you may apply to the Court to go after the assets yourself (it’s called a Section 38 Order).
I strongly suggest you talk to an experienced insolvency lawyer BEFORE you embark on this exercise as the costs may well exceed any benefit you may derive.