Bankruptcy

If you live in the (519) area code call 310John and we can help you sort through your debt issues.

Preferences/Transfers of assets at under value
One of the purposes of the Bankruptcy & Insolvency Act is, to ensure that all unsecured creditors are treated equally. Accordingly, if a creditor is given preferential treatment over other creditors, they become a preferred creditor.

People often ask me if they can pay off a friend or a certain creditor prior to their bankruptcy, and not pay the other creditors. The answer is "NO don't do it".
It is best to seek proper help and then once you have all of the information you can make a proper decision. What many people don’t realize is that the Bankruptcy & Insolvency Act actually provides a mechanism whereby such transactions are considered void and can be reversed. Often a person who received a payment or received a benefit ahead of other creditors, finds themselves involved in legal proceedings as they received a benefit over other creditors, which opens the door for others to pursue them.