What is the test for determining whether a debtor has been declared bankrupt?

British Columbia, Canada


The following excerpt is from Mgm Grand Hotel Inc. v. Liu, 1997 CanLII 2369 (BC SC):

Following the principles in Koop v. Smith, where the parties are related and there are suspicious circumstances, I am to scrutinize all the evidence with care and consider carefully the necessity of corrobative evidence. Absence of consideration for the transfer is one factor that may raise suspicions, as is the insolvency of the debtor.

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