Treats 'n More Bakery Inc.expects that bankruptcy proceedings will be commenced against it within the next month,and the owner has just transferred the title of its commercial ovens to her sister.How will this transaction be viewed by the bakery's creditors?

Question

Quizplus · Accepted Answer

This transaction is likely to be viewed as a non arm's length transaction because it involves family members, and such transactions can be scrutinized and potentially reversed by the courts to protect the interests of creditors, especially if it appears to be an attempt to shield assets from creditors in anticipation of bankruptcy.

Treats 'N More Bakery Inc