Transfer title before filing bankruptcy

March 11th, 2009 by Questions

If I transfer real estate title under compassion grounds and within a 6monts/year I file for bankruptcy or consumer proposal, what are the ramifications of this action?

Posted from: Ontario


One Response to “Transfer title before filing bankruptcy”

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

This largely depends on the amount of equity in the property, who it is transfered to and whether or not there was any consideration received. However, the likely result is that your creditors will not support a proposal when you involved in organizing your finances in such a manner to defeat their rights and this may force a bankruptcy. Also likely is that in bankruptcy this transfer could be determined to be fraudulent and have to be reversed. This act would also be considered a bankruptcy offense and will likely make it extremely difficult to be discharged from bankruptcy.

The best advice, don’t transfer the property, it is not worth the fallout that you will have to deal with.

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