Can the bankrupt simply advise or disclose the sale
If A joint peice of marital property was sold approx 9 months before the assignment and none of the equity went to the bankrupt due to a personal (verbal) agreement between the spouses when the property was purchased — ie they both had been on title but one spouse made all the payments along the way, till the sale date. Can the bankrupt simply advise or disclose the sale but advise they recieved no equity from the sale thus not need to account for it or how it was used from the sale date onward ?
Posted from: Alberta
This is difficult to answer without looking more in detail about the transaction. From the sounds of it this transaction would be considered reviewable, meaning that it must be looked into very carefully. There are certain types of transactions (fraudulent preferences and fraudulent conveyances) that are overturned by a bankruptcy.
The main issue is that by giving away your interest in the property you may have done something that defeats the rights of your creditors, and the bankruptcy legislation is designed to ensure all your creditors are given equal and fair treatment. So the best thing is to bring all the information you have about this transaction to a local trustee and have them help to determine if this is a transaction that is going to cause significant difficulties.