Canada Case Law

Rodgers (re)

Court

Supreme Court of Nova Scotia

The court found s.173(1) facts proven: the bankrupt's assets did not equal 50 cents on the dollar of unsecured liabilities and he failed to show the shortfall arose from circumstances for which he cannot justly be held responsible, and he failed to account satisfactorily for asset deficiencies (including an unexplained $20,000 receivable and a $500,000 guarantee given while effectively insolvent). Accordingly absolute discharge was precluded under s.172(2); the court exercised its discretion to order a conditional discharge requiring payments to bring estate receipts to $40,000, fixed monthly…

Source excerpt

• Discharge under bia ss.172-173
• S.173(1)(a) 50 cents on the dollar
• S.173(1)(d) failure to account
• Conditional discharge terms
• Personal guarantees
• Misappropriation of trust funds

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Smith (Re)

Court

Supreme Court of British Columbia

The court granted a conditional discharge in bankruptcy, requiring the bankrupt to pay $15,000 to the trustee in monthly instalments of $300 starting July 31, 2022.

• Absolute discharge
• Surplus income
• Trustee duties
• Disclosure and compliance
• Conditional discharge terms
• Bankruptcy

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Wadden (Re)

Court

Supreme Court of Nova Scotia

The court held that the trustee could require payment of the outstanding $12,071.22 under the existing conditional discharge and that insurance proceeds from the destroyed home are not a 'windfall' exempt from consideration but, given the prior finding of no appreciable equity and the application of issue estoppel, the Trustee could not vary the conditional order to extract the larger sum sought; accordingly the bankrupt must pay $12,071.22 from insurance proceeds and is not liable for the additional amounts sought by the Trustee.

Source excerpt

• Conditional discharge terms
• Surplus income
• After-acquired property
• Insurance proceeds treatment
• Issue estoppel
• Variation of court order

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Kozack v. Richter

Court

Supreme Court of Canada

Appeal in bankruptcy discharge terms allowed where a tort judgment debtor sought discharge after wilful and wanton misconduct caused the bankruptcy.

• Discharge in bankruptcy
• Judicial discretion
• Wilful and wanton misconduct
• Damages assessment
• Conditional discharge terms
• Bankruptcy-discharge

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