Antecedant Transactions

Question 1

Transaction at an undervalue

Answer 1

1. Gift / significantly less
2. 5 years from petition
3. 2-5 prove insolvency
   <2 assumed insolvent
   If associate presumed insolvent

Question 2

S341 definition of insolvency

Answer 2

1. Unable to pay debts as and when fall due
2. Assets less than liabilities

Question 3

S435 - associates

Answer 3

Connected by blood or law

Not cousins
Not employees

Question 4

Preference

Answer 4

1. Influenced by desire to prefer.
   Assumed if associated
2. 6 months - unassociate
   2 years - associate

Question 5

Excessive pension contributions

Answer 5

Unfairly prejudiced creditors

Question 6

Extortionate credit transactions

Answer 6

1. Exorbitant or grossly contravening ordinary principles of fair dealing
2. 3 years from petition

Burden is on lender to prove fair

Question 7

Transactions defrauding creditors

Answer 7

1. Gift / significantly less
2. Intent to prejudice interests / put assets out of reach of creditors

(Use if TUV but debtor solvent or > 5 years)

Question 8

What is the substantial purpose test - transactions defrauding creditors

Answer 8

The main and substantial purpose of the action was to remove assets from the creditors

Question 9

S285 Court Restriction

Answer 9

Court prevents creditors from proceeding against the person or property (except secured creditors)