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Voluntary settlements
The trustee can claim all property settled by the bankrupt on other persons within two years preceding the bankruptcy unless made:a. Before and in consideration of marriage; orb. In favour or a person taking in good faith and for value; orc. For his wife or children in respect of property accruing to him in right of his wife.The trustee may further claim property settled within ten years of bankruptcy, unless it is proved:a. That at the time of making the settlement, the bankrupt could pay all his debts without the aid of the settled property, and
b. All interest of the bankrupt in the property passed at the time the settlement was made.
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40
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A____ is a loss to the business and a gain to the debtor
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