Gagnon (Re)

Gagnon (Re)

The Court exercised its discretion under s.68 BIA to recognize certain out‑of‑the‑ordinary expenses despite the Superintendent’s Directive: it allowed $1,500 for travel to attend his dying father and $1,000 for vehicle repairs, reducing the Trustee’s claimed surplus from $7,000 to $4,500 and conditioning discharge...

Source-derived case information.

Citation
2013 NSSC 234
Parties
Bankrupt (applicant): Robert Ronald Gagnon; Trustee: McCuaig & Company
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
26 July 2013
Procedural Posture
Bankruptcy and Insolvency / Application to Set Conditions for Discharge From Bankruptcy
Outcome
Application granted in part; credits allowed against surplus income and discharge ordered upon payment of reduced amount.
Legal Topics
Surplus Income, Discharge From Bankruptcy, Trustee Standards, Extraordinary Expenses
Source Language
english
Bankruptcy Law Insolvency Law Surplus Income Discharge From Bankruptcy Trustee Standards Extraordinary Expenses

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Parties

Robert Ronald Gagnon

Bankrupt (applicant)

McCuaig & Company

Trustee

Procedural Posture

Bankruptcy and Insolvency / Application to Set Conditions for Discharge From Bankruptcy

  1. 1 Whether the Court may depart from the Superintendent’s Directive/Standards in calculating surplus income under s.68 BIA
  2. 2 Whether Mr. Gagnon’s travel to attend his dying father and vehicle repair expenses qualify as out‑of‑the‑ordinary expenses reducible from surplus income
  3. 3 What quantum of credit, if any, should be allowed against the Trustee’s claimed unpaid surplus income

Ratio Decidendi

The Court exercised its discretion under s.68 BIA to recognize certain out‑of‑the‑ordinary expenses despite the Superintendent’s Directive: it allowed $1,500 for travel to attend his dying father and $1,000 for vehicle repairs, reducing the Trustee’s claimed surplus from $7,000 to $4,500 and conditioning discharge on payment of $4,500 to the Trustee.

Court Disposition

Application granted in part; credits allowed against surplus income and discharge ordered upon payment of reduced amount.

Orders

  • Allow $1,500 credit for extraordinary travel expenses against Trustee’s surplus calculation
  • Allow $1,000 credit for extraordinary vehicle repair expenses against Trustee’s surplus calculation