Over the past two years Fred has experienced financial difficulty and he is currently being pursuedby creditors. Fred owes $809,000 to 8 different creditors (some of these are secured creditors andthe others are unsecured). As a consequence of his unmanageable financial situation, he decides topetition for bankruptcy. Between the date of the petition and the date that his petition is accepted,he sells his camper van valued at $20,000 to Lydia his girlfriend for $5,000. Fred gives away his boatto Marky his friend and pays off his own personal loan owed to his long-standing family memberJemma, valued at $20,000. In order to preserve property of sentimental value he leaves these lowvalue assets with his Father.

Required: Identify any issues with the validity of these transactions with reference to the australian bankruptcylaw.

Answer rating: 100% (QA)

Selling the camper van below its market value Transferring assets at significantly lower than their ... View the full answer