Term
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Definition
| Mortgages are secured. If mortgage isn't paid the bank takes the home. If mortgagee goes bankrupt and has paid over $40,000 of their loan the bank can take the home, but the mortgagee gets to keep what they have already paid off. |
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Term
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Definition
| Certain questionable transactions can be impeached, that is, they are nullified and reversed. BIA's questionable transactions include: transfers under value, preference transactions, post initiation transfer, and distribution to a particular shareholder. |
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Term
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Definition
| Transfer of property, usually to a family member, in the attempt to avoid its liquidation. Described under the Statute of Elizabeth, which lays the foundation for fraudulent transactions to be unwound. |
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Term
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Definition
| The transfer of property to a specific creditor based on favoritism, which places said creditor in a position to receive more than he or she would otherwise receive. Transferring more to creditor A instead of creditor B, simply based on preference and not priority. |
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Term
| Federal vs. Provincial Remedies for fraudulent conveyance and transfer |
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Definition
- Federal: the BIA looks backwards from the date of bankruptcy, and if transaction is avoided the property vests in the trustee.
- Provincial: if transaction is avaoided it is still valid but can be ignored. Property does not revest in debtor. Provincial laws are forward looking (in Alberta this is 1 year), and if a transaction is in the normal course of business it is not preferential.
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