November 6th, 2009 by Questions

Can a sibling give over to their other siblings their share of jointly owned (inherited) family property in order to file for personal bankruptcy? (Failure to file would likely result in forcing the siblings to lose the family property in order for the one to liquidate their assets, as it is their only real asset.

Posted from: British Columbia


One Response to “Martin”

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

You are not able to simply transfer an asset you have an interst in to someone else in an effort to protect it from seizure in a bankruptcy, this would be detrimental to the rights of the creditors.

So if you are involved in this type of transaction, upon the filing of the bankruptcy the transaction is reversed, will have to be realized on by the trustee for the benefit of the creditors and you will no longer be eligible for automatic discharge as you will have committed an offense under the Bankruptcy & Insolvency Act.

The only option you have to try and preserve the property is to arrange for your family to purchase your interest in the property from your trustee .

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