Mr. A was adjudicated bankrupt by the Court of Law. One year before Mr. A was adjudicated as a bankrupt, Mr. A had started to conveyance his property to his wife and children to avoid them to be taken away by the Director General of Insolvency (DGI). He believes that DGI will only take away the property under his name but not his wife and children. Is that true?
Under Section 52 of Bankruptcy Act 1967, any transaction between Mr. A with any person within 2 years before he was adjudicated bankrupt by the Court is deemed to be absolutely void. However, if Mr. A become bankrupt at any subsequent time within 5 years before the transaction, the transaction will not be absolutely void if he can prove that he is still able to pay all his debts without the aid of the property at that moment of time.
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