Harris (Re)

Harris (Re)

The court granted the bankrupt an absolute discharge by cancelling the outstanding balance under the conditional discharge because the bankrupt's circumstances materially changed and there was no reasonable prospect of compliance; however the court held it lacked authority to reduce the agreed $10,000 price attributable to the bankrupt's half interest in the home and directed that receipts be allocated so $10,000 be paid in full for the home equity and the caveat be lifted, with remaining funds allocated between the surplus income component and the claim respecting the conveyed property.

Citation
2009 NSSC 292
Parties
Bankrupt: Edward Patrick Harris; Trustee: Salyzyn & Associates Inc.; Superintendent: Superintendent of Bankruptcy
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
1 October 2009
Procedural Posture
Bankruptcy and Insolvency / Application to Modify Terms of Conditional Discharge Under S.172(3) BIA
Outcome
Absolute discharge granted to the bankrupt subject to specified allocation of receipts; court cancelled remaining monetary obligation except for the $10,000 attributable to home equity which is to be paid from receipts and the trustee ordered to lift its caveat on the home.
Legal Topics
Conditional Discharge, Modification Under S.172(3) BIA, Avoidance/settlement of Transfers, Allocation of Receipts, Trustee Realization Duties
Source Language
English
Bankruptcy and Insolvency Property Law Tax Law Conditional Discharge Modification Under S.172(3) BIA Avoidance/settlement of Transfers Allocation of Receipts Trustee Realization Duties

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Parties

Edward Patrick Harris

Bankrupt

Salyzyn & Associates Inc.

Trustee

Superintendent of Bankruptcy

Superintendent

Procedural Posture

Bankruptcy and Insolvency / Application to Modify Terms of Conditional Discharge Under S.172(3) BIA

Legal Issues

  1. 1 Whether the court should modify the terms of a conditional discharge under s.172(3) BIA due to changed circumstances
  2. 2 Whether the court can reduce an agreed purchase price for equity in the bankrupt's home included as a condition of discharge
  3. 3 How receipts under a conditional discharge order should be allocated among components of the condition

Ratio Decidendi

The court granted the bankrupt an absolute discharge by cancelling the outstanding balance under the conditional discharge because the bankrupt's circumstances materially changed and there was no reasonable prospect of compliance; however the court held it lacked authority to reduce the agreed $10,000 price attributable to the bankrupt's half interest in the home and directed that receipts be allocated so $10,000 be paid in full for the home equity and the caveat be lifted, with remaining funds allocated between the surplus income component and the claim respecting the conveyed property.

Court Disposition

Absolute discharge granted to the bankrupt subject to specified allocation of receipts; court cancelled remaining monetary obligation except for the $10,000 attributable to home equity which is to be paid from receipts and the trustee ordered to lift its caveat on the home.

Orders

  • Remaining receipts to be allocated between the surplus income component and the $30,000 claim relating to the property conveyed to the daughter