By: Jassmine Girgis
PDF Version: BIA Preference Payments: Evidence Rebutting the Presumption must be Objectively Reasonable
Case Commented On: Gustafson (Re), 2018 ABQB 77 (CanLII)
Introduction
Legislation that governs fraudulent preferences applies if a debtor elects to pay only one or a few of his creditors and not the others, with the consequence of preferring certain creditors. These transfers are improper if they are made on the eve of the debtor’s bankruptcy. Preferences are governed provincially, by the Fraudulent Preferences Act, RSA 2000, c F-24, and federally, under the Bankruptcy and Insolvency Act, RSC 1985, c B-3 (BIA). This case deals with the preference provisions in the BIA.