Sometimes two equally deserving litigants square off, both have worthy claims, but only one can win. This was the case in De Coito v. De Coito, a 2009 decision of the Ontario Superior Court of Justice. Wife Husband and wife … Continue reading
This is a variation on the theme of the previous case. In this situation, the borrower blames someone else for his woes and then states that, consequently, the bank should not be able to claim repayment of the debt. This … Continue reading
A borrower decides to buy a business. He goes to the bank for financing. The bank, before deciding whether to advance funds, wants the assets appraised and either accepts the borrower’s appraisal or arranges its own. The bank lends, the … Continue reading
Debtors who have fraudulently conveyed their property, usually to their spouses, often claim that they had always intended to transfer the property and, in doing so, they were not trying to defeat their creditors; they were simply trying to give … Continue reading
Sometimes, the only asset that a creditor can seize from a debtor is a bequest to the debtor under the will of someone who has died. The creditor must move swiftly because once the estate trustee pays the money, the … Continue reading
The bankruptcy system is said to exist to assist the honest but unfortunate debtor who finds herself in over her head. It is not intended to help people who are attempting to beat the system. Often, the dishonest and fortunate … Continue reading
One of the main reasons for a person to incorporate is to obtain the benefit of limited liability (i.e. the corporation, as a separate legal entity, is liable for its debts; its shareholders are not). However, regardless of incorporation, directors … Continue reading
The goal of an effective fraudulent debtor is to hide his assets; the more ways he hides them, the better. One of the usual means is by way of a hidden trust. Another is to transfer funds in a circle, … Continue reading
Creditors have various remedies in their collection arsenal. Sometimes, however, they use the wrong one and fire blanks. This was the case in Re Assaf Estate, a 2008 decision of the Ontario Superior Court of Justice. Garnishment The debtor owed … Continue reading
In law school, a professor would give us some facts in the context of the legal concepts we were discussing. A student would opine on the likely result. The professor would then change the facts – ever so slightly. The … Continue reading