Can Property That Was Not Formally Owned by the Bankrupt

question 18

Multiple Choice

Can property that was not formally owned by the bankrupt be recovered if it is held by an associated entity of the bankrupt?

• A)Yes,if the trustee can prove that the bankrupt derived some benefit from the property.
• B)Yes,if the trustee can prove that the entity was insolvent at the time the property was transferred.
• C)No.
• D)No,unless the trustee from the director of the associated entity provides a sworn statement that the property really belonged to the bankrupt.

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Definitions:

Bilge

The lowest part or area of a ship's hull, often used to collect excess water that can then be pumped out.

Fraud

The tort of intentionally or recklessly misleading another person or making statements without belief in their truth.

Independent Agent

An individual or entity contracted to perform tasks or services for another entity while retaining control over their work methods.

Breach

The violation or non-fulfilment of a legal obligation, contract, or duty.