The plaintiff Trustee brought a motion for summary judgment to set aside a conveyance of property from the bankrupt defendant to a close family friend for $1.
The transfer occurred less than three months before the defendant filed for bankruptcy and shortly after she was ordered to pay costs in estate litigation.
The court found the transfer was made at undervalue to a non-arm's length party with the intent to defeat or delay creditors.
The motion was granted, and the conveyance was declared void under section 96(1) of the Bankruptcy and Insolvency Act.
