Croft (Re)

Croft (Re)

Court found the decrease in income was not significant, training expenses were reasonable and necessary to maintain employment, the bankrupt had never made voluntary payments and the Registrar had failed to deduct allowable business expenses; applying current facts to the original assessment, the court modified the conditional order to reduce the total required to $17,000, acknowledged prior payments, suspended monthly garnishment until June 1, 2003 to permit completion of training and ordered payments of $550/month to resume June 1, 2003 until the balance is paid.

Citation
2002 NSSC 266
Parties
Bankrupt/applicant: Michael Burnum Croft; Trustee/respondent: PricewaterhouseCoopers Inc.
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
13 December 2002
Procedural Posture
Bankruptcy — Application Under S.172(3) BIA to Modify Conditional Order of Discharge / Chambers Hearing on Application to Modify Conditional Order of Discharge (post‑discharge Modification)
Outcome
Application granted in part; conditional order of discharge modified
Legal Topics
Conditional Order of Discharge, Modification Under S.172(3) BIA, Income Assessment, Garnishment, Trustee Distributions
Source Language
English
Bankruptcy and Insolvency Civil Procedure Administrative Law Conditional Order of Discharge Modification Under S.172(3) BIA Income Assessment Garnishment Trustee Distributions

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Parties

Michael Burnum Croft

Bankrupt/applicant

PricewaterhouseCoopers Inc.

Trustee/respondent

Procedural Posture

Bankruptcy — Application Under S.172(3) BIA to Modify Conditional Order of Discharge / Chambers Hearing on Application to Modify Conditional Order of Discharge (post‑discharge Modification)

Legal Issues

  1. 1 Whether the bankrupt has satisfied the court there is no reasonable probability he can comply with the terms of the conditional order
  2. 2 Whether changes in the bankrupt's financial circumstances justify reduction of the total or monthly payments
  3. 3 Whether certain business expenses should have been deducted when assessing available income

Ratio Decidendi

Court found the decrease in income was not significant, training expenses were reasonable and necessary to maintain employment, the bankrupt had never made voluntary payments and the Registrar had failed to deduct allowable business expenses; applying current facts to the original assessment, the court modified the conditional order to reduce the total required to $17,000, acknowledged prior payments, suspended monthly garnishment until June 1, 2003 to permit completion of training and ordered payments of $550/month to resume June 1, 2003 until the balance is paid.

Court Disposition

Application granted in part; conditional order of discharge modified

Orders

  • Total amount payable by Croft to trustee set at CAD 17000
  • Acknowledged payments of CAD 7975 made to date, leaving balance of CAD 9025 owing