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My father gave me money and an apartment. It looks as if he is going to be declared bankrupt. Are the gifts in danger ?

By: דיאנה שאלתיאל•Published on: 12 May, 2022

Not necessarily as it depends upon when the gift was given in relation to when someone is declared bankrupt.

Under the Bankruptcy Ordinance, which applies to individuals, gifts made in the two years immediately preceding a declaration of bankruptcy are automatically cancelled.

Gifts given between 2-10 years prior to the declaration of bankruptcy may still be valid if the recipient manages to prove two cumulative conditions – (1) that the giver was financially solvent (without the gift) when he gave it and (2) that after the gift was made rights in the property were transferred to the recipient.

If more than 10 years have passed since the donor was declared bankrupt then the gift holds.

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