Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
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8. If Mr. T gives his car to his brother as a gift, then what possible legal action will he face?

According to section 132 of the Bankruptcy Ordinance, any persons who have been adjudged bankrupt will be guilty of an offence if they have made any gifts or transfers of, or charges on, their properties with the intent to defraud their creditors. Such persons will be liable to imprisonment for up to a maximum of two years.

If Mr. T transfers his car to his brother to defraud his creditors, then he has committed a bankruptcy offence and may be liable to imprisonment.

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