Fraudulent Conveyances and Fraudulent Preferences - Revision history

Drew Jackson: /* Fraudulent preferences */

2018-10-12T13:46:17Z

Fraudulent preferences

← Older revision		Revision as of 13:46, 12 October 2018
Line 19:		Line 19:

	=== Fraudulent preferences===		=== Fraudulent preferences===
	Under the [http://canlii.ca/t/8420 Fraudulent Preference Act], if a debtor cannot pay their creditors and makes a transfer or payment favouring one particular creditor, that transfer or payment is considered a fraudulent preference and is void. The debtor is said to have “preferred” that one creditor over the others. This situation is probably more likely to arise in commercial situations than in consumer situations. However, it may arise, for example, in situations where the debtor borrows money from a relative and pays off the relative but does not pay any other creditor.		Under the [http://canlii.ca/t/8420 ''Fraudulent Preference Act''], if a debtor cannot pay their creditors and makes a transfer or payment favouring one particular creditor, that transfer or payment is considered a fraudulent preference and is void. The debtor is said to have “preferred” that one creditor over the others. This situation is probably more likely to arise in commercial situations than in consumer situations. However, it may arise, for example, in situations where the debtor borrows money from a relative and pays off the relative but does not pay any other creditor.

	If a creditor feels that a transfer is fraudulent according to the ''Fraudulent Preference Act'', it can bring a court action against the debtor and attempt to get at the money (or other asset) transferred as part of its enforcement steps.		If a creditor feels that a transfer is fraudulent according to the ''Fraudulent Preference Act'', it can bring a court action against the debtor and attempt to get at the money (or other asset) transferred as part of its enforcement steps.

Drew Jackson: /* Related topics and materials */

2018-10-12T13:23:09Z

Drew Jackson at 14:37, 9 October 2018

2018-10-09T14:37:19Z

← Older revision		Revision as of 14:37, 9 October 2018
Line 3:		Line 3:
	It is against the law for a debtor to avoid a creditor’s claim by transferring an interest in property (a '''fraudulent conveyance''') or making payments to (“preferring”) another creditor (a '''fraudulent preference''').		It is against the law for a debtor to avoid a creditor’s claim by transferring an interest in property (a '''fraudulent conveyance''') or making payments to (“preferring”) another creditor (a '''fraudulent preference''').
	== Client problems==		== Client problems==
	* ~~Client~~ asks if it is permissible to “hide” assets from creditors or a court bailiff.		* Client asks if it is permissible to “hide” assets from creditors or a court bailiff.
	* Client asks if it is permissible to pay off a relative who is a creditor, but not other creditors.		* Client asks if it is permissible to pay off a relative who is a creditor, but not other creditors.
	* Client asks if they can avoid creditors coming after the client’s house by transferring it into the name of their spouse, who is not legally liable for the debts of the client.		* Client asks if they can avoid creditors coming after the client’s house by transferring it into the name of their spouse, who is not legally liable for the debts of the client.

	== Summary of the law ==		== Summary of the law ==
	[[File:Consumer_Law_and_Debt_-_Fraudulent_Conveyances_and_Fraudulent_Preferences.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]		[[File:Consumer_Law_and_Debt_-_Fraudulent_Conveyances_and_Fraudulent_Preferences.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]

Elena Renderos at 04:58, 21 September 2018

2018-09-21T04:58:07Z

← Older revision		Revision as of 04:58, 21 September 2018
Line 8:		Line 8:

	== Summary of the law ==		== Summary of the law ==
			[[File:Consumer_Law_and_Debt_-_Fraudulent_Conveyances_and_Fraudulent_Preferences.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]
	Many debtors actively try to avoid creditors’ claims against them, either legally (by an [[Assignments in Bankruptcy\|assignment in bankruptcy]], for example) or illegally. This section briefly outlines the basic legal and ethical issues to watch for when clients ask “what if” questions. (See also the comments on ethics at the beginning of this publication.)		Many debtors actively try to avoid creditors’ claims against them, either legally (by an [[Assignments in Bankruptcy\|assignment in bankruptcy]], for example) or illegally. This section briefly outlines the basic legal and ethical issues to watch for when clients ask “what if” questions. (See also the comments on ethics at the beginning of this publication.)

Elena Renderos at 19:33, 19 September 2018

2018-09-19T19:33:27Z

← Older revision		Revision as of 19:33, 19 September 2018
Line 33:		Line 33:
	== Related topics and materials==		== Related topics and materials==
	See the other sections on legal actions:		See the other sections on legal actions:
	* Recovery of ~~Goods~~		* [[Recovery of Goods]]
	* Tort ~~Actions~~		* [[Tort Actions]]

	See related topics:		See related topics:
	* Assignments in ~~Bankruptcy~~		* [[Assignments in Bankruptcy]]
	* Court Process in Consumer and Debt ~~Matters~~		* [[Court Process in Consumer and Debt Matters]]
	* Debtor’s Options for Getting Out of Court		* [[Debtor’s Options for Getting Out of Court]]

Elena Renderos at 00:39, 17 September 2018

2018-09-17T00:39:13Z

← Older revision		Revision as of 00:39, 17 September 2018
Line 40:		Line 40:
	* Court Process in Consumer and Debt Matters		* Court Process in Consumer and Debt Matters
	* Debtor’s Options for Getting Out of Court		* Debtor’s Options for Getting Out of Court


	{{Consumer and Debt Law Navbox\|type = consumer}}		{{Consumer and Debt Law Navbox\|type = consumer}}

Elena Renderos at 23:33, 16 September 2018

2018-09-16T23:33:52Z

← Older revision		Revision as of 23:33, 16 September 2018
Line 8:		Line 8:

	== Summary of the law ==		== Summary of the law ==
	Many debtors actively try to avoid creditors’ claims against them, either legally (by an assignment in bankruptcy, for example) or illegally. This section briefly outlines the basic legal and ethical issues to watch for when clients ask “what if” questions. (See also the comments on ethics at the beginning of this publication.)		Many debtors actively try to avoid creditors’ claims against them, either legally (by an [[Assignments in Bankruptcy\|assignment in bankruptcy]], for example) or illegally. This section briefly outlines the basic legal and ethical issues to watch for when clients ask “what if” questions. (See also the comments on ethics at the beginning of this publication.)

	=== Fraudulent conveyances===		=== Fraudulent conveyances===
	Under the [http://canlii.ca/t/841z ''Fraudulent Conveyance Act''], disposing of property to delay, hinder or defraud creditors is illegal. The law still sees it as the debtor’s property and so allows creditors to continue to get at that property.		Under the [http://canlii.ca/t/841z ''Fraudulent Conveyance Act''], disposing of property to delay, hinder or defraud creditors is illegal. The law still sees it as the debtor’s property and so allows creditors to continue to get at that property.

	The most common disposal of property of interest to the ''Fraudulent Conveyance Act'' is the transfer of property to a relative, such as a spouse. If a husband and wife jointly own a house for many years and suddenly the husband transfers it to his wife just as a creditor begins a legal action against the husband, the transfer might be considered a fraudulent conveyance. Transferring chattels (personal, moveable possessions; see the section on Enforcing Judgments Against Chattels) under the same circumstances might also be considered fraudulent.		The most common disposal of property of interest to the ''Fraudulent Conveyance Act'' is the transfer of property to a relative, such as a spouse. If a husband and wife jointly own a house for many years and suddenly the husband transfers it to his wife just as a creditor begins a legal action against the husband, the transfer might be considered a fraudulent conveyance. Transferring chattels (personal, moveable possessions; see the section on [[Enforcing Judgments Against Chattels]]) under the same circumstances might also be considered fraudulent.

	If a creditor feels that a disposition was fraudulent within the meaning of the ''Fraudulent Conveyance Act'', it can bring a court action against the debtor and attempt to get at the asset as part of its enforcement steps.		If a creditor feels that a disposition was fraudulent within the meaning of the ''Fraudulent Conveyance Act'', it can bring a court action against the debtor and attempt to get at the asset as part of its enforcement steps.

Elena Renderos at 05:18, 9 September 2018

2018-09-09T05:18:33Z

@@ Line 1: / Line 1: @@
 {{REVIEWEDPLS | reviewer = [[Alison Ward]]|date= August 2018}}{{Consumer and Debt Law TOC|expanded = actions}}
-{{ambox
+It is against the law for a debtor to avoid a creditor’s claim by transferring an interest in property (a '''fraudulent conveyance''') or making payments to (“preferring”) another creditor (a '''fraudulent preference''').
-| type       = content
+== Client problems==
-| small      = center
+* Client asks if it is permissible to “hide” assets from creditors or a court bailiff.
-| image      =
+* Client asks if it is permissible to pay off a relative who is a creditor, but not other creditors.
-| smallimage =
+* Client asks if they can avoid creditors coming after the client’s house by transferring it into the name of their spouse, who is not legally liable for the debts of the client.
-| textstyle  =
-| text       = This page is in the process of being updated. Please check back shortly.<br>
+== Summary of the law ==
-| smalltext  =
+Many debtors actively try to avoid creditors’ claims against them, either legally (by an assignment in bankruptcy, for example) or illegally. This section briefly outlines the basic legal and ethical issues to watch for when clients ask “what if” questions. (See also the comments on ethics at the beginning of this publication.)
-}}
 {{Consumer and Debt Law Navbox|type = consumer}}

Drew Jackson at 04:04, 29 August 2018

2018-08-29T04:04:52Z

← Older revision		Revision as of 04:04, 29 August 2018
Line 1:		Line 1:
	{{REVIEWEDPLS \| reviewer = [[Alison Ward]]\|date= ~~June~~ 2018}}{{Consumer and Debt Law TOC\|expanded = actions}}		{{REVIEWEDPLS \| reviewer = [[Alison Ward]]\|date= August 2018}}{{Consumer and Debt Law TOC\|expanded = actions}}

	{{ambox		{{ambox

Elena Renderos at 03:49, 9 July 2018

2018-07-09T03:49:26Z

← Older revision		Revision as of 03:49, 9 July 2018
Line 1:		Line 1:
	{{REVIEWEDPLS \| reviewer = [[Alison Ward]]\|date= June 2018}}{{Consumer and Debt Law TOC\|expanded =~~ actions~~}}		{{REVIEWEDPLS \| reviewer = [[Alison Ward]]\|date= June 2018}}{{Consumer and Debt Law TOC\|expanded = actions}}

	{{ambox		{{ambox

← Older revision		Revision as of 13:23, 12 October 2018
Line 43:		Line 43:


	{{Consumer and Debt Law Navbox\|type = ~~consumer~~}}		{{Consumer and Debt Law Navbox\|type = debt}}

	{{Creative Commons for PLS		{{Creative Commons for PLS