In Re Fancy, a Businessman Knew That He Was Facing

question 79

Multiple Choice

In Re Fancy, a businessman knew that he was facing substantial losses from pending litigation. Shortly before declaring bankruptcy, he transferred his interest in the matrimonial home to his wife. What was the result?

• A) The Court reversed the transfer, because it was unnecessary: The wife would automatically receive the matrimonial home once the bankruptcy took effect.
• B) The Court allowed the transfer, determining the wife was not a co-conspirator.
• C) The Court allowed the transfer, because transfers between spouses are exempt under the Bankruptcy and Insolvency Act.
• D) The Court reversed the transfer, determining it was a prohibited settlement under the Bankruptcy and Insolvency Act.
• E) The Court declined to exercise jurisdiction because a bankrupt has no status to appear in court.

---

Definitions:

New Middle Class

A socio-economic group that emerged, often characterized by professional employment, higher education, and moderate to high income.

Economic Independence

The state of having sufficient personal wealth to live, without needing to work actively for basic necessities, allowing an individual to have control over their financial decisions.

Federally Provided Public Land

Land owned by the federal government, set aside for various uses such as national parks, forest reserves, or public utilities.

Factory System

A method of manufacturing using machinery and division of labor, characteristic of the Industrial Revolution.