Free Consultation

Gifts and Bankruptcy

My father declared bankruptcy (or plans to) and he bought me a car 2 years ago. It is under my name, and is completely payed off. Can it be repossessed? Do you have information about gifts and bankruptcy in general?

Posted from: Alberta

One Response to “Gifts and Bankruptcy”

Desmond West-Chow, CIRP said...

You have to be very careful when filing a bankruptcy as often the context of transactions can be very important. For this reason I would strongly suggest you have your father meet with a local trustee right away. When looking at these types of transfers there are a number of factors that have to be considered (i.e. was your father insolvent at the time, did this transaction render your father insolvent, was there intent to defeat the rights of creditors, when did the transaction occur, did this debt exist when the gift was made, what was the value of the vehicle etc.). All of these elements must be considered to determine if this will cause any issues.