If you were a debtor in financial difficulty who thought that your creditors were likely to seek
Question:
If you were a debtor in financial difficulty who thought that your creditors were likely to seek a bankruptcy order against you in the next few months, could you protect some of your assets against your creditors by transferring them to your spouse for $1?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 37% (8 reviews)
It is unlikely that you could transfer assets to your spouse for 1 Under the BIA certain transactions can be challenged by the trustee If a bankruptcy occurs any transfer of assets to a spouse or other person related to the debtor within one year of the date of the bankruptcy can be set aside on the basis that the assets were undervalued Any transfer of property to a nonrelated person made within a oneyear period prior to bankruptcy may be declared void if the debtor is insolvent at the time of the transfer or would be made involvent by the transfer and the debtor made the transfer with the intention of defeating creditors If such transfer is to a spouse or other person related to the debtor then the period during with transfers are reviewable is extended to 5 years Consequently you could not protect your assets by transferring them to your spouse for 1 a few months before the bankruptcy Such a transfer could be declared void Even if bankruptcy did not occur a creditor could seek to set aside the transaction ...View the full answer
Answered By
Susan Juma
I'm available and reachable 24/7. I have high experience in helping students with their assignments, proposals, and dissertations. Most importantly, I'm a professional accountant and I can handle all kinds of accounting and finance problems.
4.40+
15+ Reviews
45+ Question Solved
Related Book For
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer
Question Posted:
Students also viewed these Business questions
-
If you were a top manager of a medium-sized real estate sales agency, would you use MBO? If so, give examples of goals you might set for managers and sales agents.
-
If you were a restaurant owner, what internal controls would you implement to help maintain control of your cash?
-
If you were a credit card customer, would you feel secure that banks, such as Citi, are adequately protecting your personal information and guarding against criminals accessing your money or stealing...
-
A 0.20-m-diameter, thin-walled steel pipe is used to transport saturated steam at a pressure of 20 bars in a room for which the air temperature is 25C and the convection heat transfer coefficient at...
-
Air expands diabolically through a nozzle from a negligible initial velocity to a final velocity of 325 ms-1. What is the temperature drop of the air, if air is assumed to be an ideal gas for which...
-
In Problems 4752, find functions f and g so that f g = H. H(x) = |2x 2 + 3|
-
True or False: If \(\operatorname{IRR}(\mathrm{A})>\operatorname{IRR}(\mathrm{B})\), then \(\operatorname{ERR}(\mathrm{A})>\operatorname{ERR}(\mathrm{B})\).
-
Hassellhouf Companys trial balance at December 31, 2014, is presented below. All 2014 transactions have been recorded except for the items described shown below. Unrecorded transactions: 1. On May 1,...
-
(20 pts) Design a combinational circuit that counts ones at its inputs. The circuit has three 1-bit binary inputs (x, y, z) and two 1-bit binary outputs (f2, f1). "f2f1" is "00" if none of the inputs...
-
Heat capacity of layer lattice (a) Consider a dielectric crystal made up of layers of atoms, with rigid coupling between layers so that the motion of the atoms is restricted to the plane of the...
-
What is a discharge from bankruptcy? What debts are non-dischargeable? Why?
-
Jerome has just made an assignment in bankruptcy. He had started a restaurant business as a sole proprietorship but, despite his best efforts, it failed. He could not pay off all his creditors. He is...
-
Teller SEs post-closing trial balance at December 31, 2022, was as follows. At December 31, 2022, Teller had the following number of ordinary and preference shares. The dividends on preference shares...
-
What is the output of the following program: digit="1-2, buckle my SHOE!" digit.upper() str digit.lower print("upper case: + str) print("lower case: + digit)
-
7. What does the following code (in Scheme) do? (define A (lambda (x) (if (= x 1) 1 (* (A (- 1))) ))) 8. What are "side effects"? Give an example of a function with side effects (state the language...
-
6. Find the binary equivalent for the following decimal numbers. Finfl the round off error, if there is any: [1 mark] a. (5.75)10= b. (2.625)10=
-
a) What is the minimum speed with which a meteor strikes the top of Earth's stratosphere (about 43.5 km above the surface), assuming that the meteor begins as a bit of interplanetary debris far from...
-
(8 pts) 2. Let f(x)=x+6. Find: (a) f(0) (b) f(-14) (c) Find the value of x for which f(x)=8 (d) Find the value of x for which f(x)=0
-
How is the National Institute for Occupational Safety and Health (NIOSH) related to the Occupational Safety and Health Review Commission (OSHRC)?
-
You are standing at x = 9.0 km and your assistant is standing at x = 3.0 km. Lightning bolt 1 strikes at x = 0 km and lightning bolt 2 strikes at x = 12.0 km. You see the flash from bolt 2 at t = 10...
-
What remedies are available for the tort of nuisance? How does a judge decide which remedy to award in any particular case?
-
What factors do the courts consider in deciding whether the defendant has committed the tort of nuisance? What is the most important factor?
-
Can a landlord ever be held liable under the tort of occupiers liability if a claimant is injured while visiting a property that is being rented by a tenant? Explain your answer.
-
Bramhope Manufacturing Co. Ltd has found that, after only two years of using a machine for a semi-automatic process, a more advanced model has arrived on the market. This advanced model will not only...
-
An existing mortgage with a $200,000 balance has a 5% rate and 20 years remaining. Monthly payments are $1320. A new 20-year $200,000 mortgage is offered with a 4.5% rate. There is a 1% loan...
-
Louis has an obligation to pay a sum of R7 000,00 four years from now. His creditor permits him to discharge the debt by paying R2 000,00 one year from now and a final payment of X three years from...
Study smarter with the SolutionInn App