Bankruptcy and Insolvency Act

Marginal note:Certain settlements void

• 91 (1) Any settlement of property made within the period beginning on the day that is one year before the date of the initial bankruptcy event in respect of the settlor and ending on the date that the settlor became bankrupt, both dates included, is void against the trustee.

• Marginal note:If bankrupt within five years

  (2) Any settlement of property made within the period beginning on the day that is five years before the date of the initial bankruptcy event in respect of the settlor and ending on the date that the settlor became bankrupt, both dates included, is void against the trustee if the trustee can prove that the settlor was, at the time of making the settlement, unable to pay all the settlor’s debts without the aid of the property comprised in the settlement or that the interest of the settlor in the property did not pass on the execution thereof.

• Marginal note:Non-application of section

  (3) This section does not extend to any settlement made in favour of a purchaser or incumbrancer in good faith and for valuable consideration.