Concealing or disposing of property

Contributed by Ian Macdonald and current to 1 September 2005

Some debtors, seeing a financial crisis looming, imagine they can protect a piece of property by ‘putting it in someone else’s name’. This does not work. A gift of property, or a sale of it for less than it is worth, can be opened up if the person making the gift then becomes bankrupt. The bankruptcy administration can go back five years to open up a gift or sale like this, if the person was not able to pay his or her debts at the time. It is also an offence to conceal property, or lie about it. This can result in a person being prosecuted and the bankruptcy administration can object to the person’s discharge from bankruptcy.