פקודת פשיטת הרגל מאפשר לבית המשפט לבטל הענקות נכסים על ידי אדם שפשט רגל בתוך 10 שנים ממועד ההעברה, והכל ככל שלא הוכח כי בזמן שנעשתה ההענקה היה המעניק כשר-פרעון של כל חובותיו בלי להיזקק לנכס שהוענק. הפקודה מחריגה מכך הענקה שנעשתה לטובת קונה או בעל שעבוד בתום לב ובתמורה בת ערך. במקרה זה פסק בית המשפט כי מכיוון שההעברה הייתה לאחיו של פושט הרגל, קיימת חזקה שלא נסתרה בדבר ידיעת המקבל על הקשיים הכלכליים של המעניק. בית המשפט ביטל גם משכון אשר נרשם לאבטחת חוב שהיה קיים קודם כשהוא פוסק כי קיום חוב קודם אינו מהווה תמורה בת ערך.
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