Bankruptcy of Gill

Bankruptcy of Gill

The severance-style payment was income within s.68(2)(a), analogous to compensation for loss of income, and therefore reportable to the Trustee; the Trustee was entitled to calculate remittable amounts under s.68(3) using the Superintendent's Guidelines. The debtor's exemption claim failed because the funds were received after the date of bankruptcy, the vehicle was registered in the daughter's name, and there was no lawful exemption of $10,000 under provincial rules.

Citation
2005 BCSC 248
Parties
Bankrupt: Amrik Singh Gill aka Mike Gill; Creditor: Canada Customs and Revenue Agency; Trustee: J. Beverley
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
23 February 2005
Procedural Posture
Bankruptcy / Application for Directions Under S.34 (directions Hearing)
Outcome
Order granted: surrender and sale of vehicle; funds characterized as earnings and reportable to Trustee; exemption denied.
Legal Topics
Severance Characterization, Earnings Versus Receivable, Exemption of Assets, Trustee Remittance Under Superintendent's Guidelines
Source Language
English
Bankruptcy Insolvency Employment Law Tax Severance Characterization Earnings Versus Receivable Exemption of Assets Trustee Remittance Under Superintendent's Guidelines

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Parties

Amrik Singh Gill aka Mike Gill

Bankrupt

Canada Customs and Revenue Agency

Creditor

J. Beverley

Trustee

Procedural Posture

Bankruptcy / Application for Directions Under S.34 (directions Hearing)

Legal Issues

  1. 1 Whether the severance payment constitutes earnings or a receivable/asset of the bankrupt
  2. 2 Whether proceeds used to purchase a vehicle are exempt under provincial exemption rules
  3. 3 Whether Trustee properly calculate remittable income under s.68 using the Superintendent's Guidelines

Ratio Decidendi

The severance-style payment was income within s.68(2)(a), analogous to compensation for loss of income, and therefore reportable to the Trustee; the Trustee was entitled to calculate remittable amounts under s.68(3) using the Superintendent's Guidelines. The debtor's exemption claim failed because the funds were received after the date of bankruptcy, the vehicle was registered in the daughter's name, and there was no lawful exemption of $10,000 under provincial rules.

Court Disposition

Order granted: surrender and sale of vehicle; funds characterized as earnings and reportable to Trustee; exemption denied.

Orders

  • Bankrupt's daughter ordered to surrender 2004 Toyota Matrix to the Trustee for sale
  • Trustee to sell the vehicle and apply net proceeds to the bankrupt's estate