A Businessman Knew That He Was Facing Substantial Losses from Pending

question 56

Multiple Choice

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

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Definitions:

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