2025-08-01
Transferring Assets Before Bankruptcy: Why You Should Consult a Trustee
Bankruptcy
If you’re struggling with your finances and heading toward bankruptcy, you may think it makes sense to sell or transfer some of your assets.
No, that can actually cause you problems in a bankruptcy.
One of the basic elements of bankruptcy is that you have to treat all of your creditors the same. If you choose one creditor and pay them but leave the others to be dealt with in the bankruptcy, that's considered to be unfair. If you do this (especially if it's with a related party), it's pretty likely that you'll have trouble getting your Discharge (which is the final step in a bankruptcy - it's the step that extinguishes your debts and 'sets you free.') In most cases, the court will require you to pay into the bankruptcy an amount equal to what you paid to the family member before they will give you your discharge.
2025-08-01
Bankruptcy
If you’re struggling with your finances and heading toward bankruptcy, you may think it makes sense to sell or transfer some of your assets.
2025-06-30
Bankruptcy
There are several common scenarios which may cause you to wonder whether personal bankruptcy is an appropriate option to get out of debt.
2025-04-25
Bankruptcy
Filing for Bankruptcy is a significant decision that can provide a fresh start for Canadians overwhelmed by debt. However, it’s essential to approach this process with caution and awareness to avoid common pitfalls and make informed decisions to protect your financial future.