Impugned Transactions: Preferences and Transfers at Undervalue

Summary

This practice note discusses ss. 95 and 96 of the Bankruptcy and Insolvency Act, which enable a trustee to pursue for the benefit of the creditors any economic loss suffered by the creditors as a result of the bankrupt transferring property within the statutory time periods prior to the bankruptcy. Understanding the impact of these provisions is essential for family law practitioners, whether they represent the debtor spouse or the creditor spouse, as these provisions can have a significant impact on the validity and enforceability of payments and property transfers between separated spouses.