McInnis (Re)

McInnis (Re)

Given the PA's knowledge of a prior court order, its role in formulating and recommending an unreasonable and not‑in‑good‑faith consumer proposal, its attempt to remove the matter from court supervision by an informal fee agreement, and the seriousness of involvement by an unregulated debt advisor, the Court exercised its supervisory authority to tax the PA's accounts at nil (inclusive of disbursements) and ordered turnover of funds held to the prior trustee under s.67 BIA.

Citation
2026 NSSC 10
Parties
Proposal Administrator: Harris & Partners Inc.; Regulatory Intervener: Office of the Superintendent of Bankruptcy; Debtor/bankrupt: Terrance Francis McInnis; Prior Trustee: Rita Anderson & Associates Inc.
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
12 January 2026
Procedural Posture
Taxation of Proposal Administrator's Accounts Under the Bankruptcy and Insolvency Act / Decision Following Taxation Hearing and Case Management Conference
Outcome
Accounts taxed at nil inclusive of disbursements; funds held by the Proposal Administrator in the amount of $1,750 (plus accrued interest) are after‑acquired property of the bankrupt and to be turned over to Rita Anderson & Associates Inc. forthwith; directions regarding reappointment of trustee if necessary and...
Legal Topics
Consumer Proposal, Taxation of Accounts, Licensed Insolvency Trustee Conduct and Ethics, Debt Advisory Marketplace and Lead Generators, Turnover of After‑acquired Property
Source Language
English
Bankruptcy and Insolvency Administrative Law Professional Regulation Consumer Proposal Taxation of Accounts Licensed Insolvency Trustee Conduct and Ethics Debt Advisory Marketplace and Lead Generators Turnover of After‑acquired Property

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Parties

Harris & Partners Inc.

Proposal Administrator

Office of the Superintendent of Bankruptcy

Regulatory Intervener

Terrance Francis McInnis

Debtor/bankrupt

Rita Anderson & Associates Inc.

Prior Trustee

Procedural Posture

Taxation of Proposal Administrator's Accounts Under the Bankruptcy and Insolvency Act / Decision Following Taxation Hearing and Case Management Conference

Legal Issues

  1. 1 Whether the Proposal Administrator's fees and disbursements are payable given its conduct and failure to disclose a prior court order
  2. 2 Whether the Court should exercise its supervisory authority to tax accounts despite parties' agreement to a fee reduction
  3. 3 Whether funds held by the PA are after‑acquired property of the bankrupt under s.67 BIA and must be turned over to the prior trustee

Ratio Decidendi

Given the PA's knowledge of a prior court order, its role in formulating and recommending an unreasonable and not‑in‑good‑faith consumer proposal, its attempt to remove the matter from court supervision by an informal fee agreement, and the seriousness of involvement by an unregulated debt advisor, the Court exercised its supervisory authority to tax the PA's accounts at nil (inclusive of disbursements) and ordered turnover of funds held to the prior trustee under s.67 BIA.

Court Disposition

Accounts taxed at nil inclusive of disbursements; funds held by the Proposal Administrator in the amount of $1,750 (plus accrued interest) are after‑acquired property of the bankrupt and to be turned over to Rita Anderson & Associates Inc. forthwith; directions regarding reappointment of trustee if necessary and...

Orders

  • Proposal Administrator's fees and disbursements taxed at nil
  • Proposal Administrator to turn over $1,750 plus accrued interest to Rita Anderson & Associates Inc. forthwith as after‑acquired property of the bankrupt pursuant to s.67 BIA