Bankruptcy Protection

I have signed a personal guarantee on a loan from a bank. With the economy downturn I may not have the funds to make repayments. Can I transfer/gift assets to my children now in the event I have to declare bankruptcy in the next 12 months?

Posted on Friday, August 7, 2009 | Filed under: Bankruptcy
 posted by Questions @ 10:58 pm 1 Comment
1 Expert Comment:

 At August 10, 2009 | 5:49 am , Bart Goth, Trustee in Bankruptcy Said...

This type of behavior is contrary to the intint of the Bankruptcy and Insolvency Act and as a result the legislation has a number of areas that are designed to prevent this activity. Many of these types of questionable transactions are reversible for up to a 5 year period of time. Furhtermore, if you are involved in a transaction of this nature you may very well be ineligible for discharge from your debts. So the best advice is don’t do it. If you are contemplating the filing of a bankruptcy you are best to leave things as they are and contact a local trustee before you do something that will result in difficulties. You may even find that with the many exemptions that are able in the province of Alberta you may have very little that is even impacted by a bankruptcy.

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