Supreme Court

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IN THE SUPREME COURT OF NOVA SCOTIA

IN BANKRUPTCY AND INSOLVENCY

Citation: George (Re), 2008 NSSC 304

 

Date: October 17, 2008

          Docket: B 31998

Registry: Halifax

 

 

District of Nova Scotia

Division No. 02 - Truro -Pictou

Court No. B-31998

Estate No. 51-976030

 

IN THE MATTER OF THE BANKRUPTCY OF

THOMAS JUSTIN GEORGE

 

- and -

 

IN THE MATTER OF THE APPLICATION OF THE

BANKRUPT FOR DISCHARGE PURSUANT TO                  

SECTION 169 OF THE BANKRUPTCY AND INSOLVENCY ACT

 

_________________________________________________________________

 

LIBRARY  HEADING                                          _________________________________________________________________

 

Registrar:              Richard W. Cregan, Q.C.                             

 

Heard:                  July 30, 2008                                                                  

 

Written Decision: October 17, 2008

 

Subject:                Discharge of Bankrupt

 


Summary:             A substantial judgment had been obtained against the bankrupt for damages caused by an automobile accident where the bankrupt was driving without the owner’s consent and thus without insurance coverage.

 

Issue:          On being pressed for payment on the judgment he made an assignment in bankruptcy.  With the support of the Trustee he sought his discharge.  The assignee by way of subrogation of the judgment objected, arguing among other things that the bankrupt, not being able to pay fifty cents on the dollar, could not show his liability had arisen from circumstances for which he could not justly be held responsible.  (Subsection 173(1)(a) of the Bankruptcy and Insolvency Act). Then his discharge would have to be conditional.  (Subsection 172(2)).  Reliance was made on Kozack v Richter, a Supreme Court of Canada decision, and a number of cases following it.

 

Result:                  It was held that he had not discharged the burden of proving that he could not justly be held responsible.  Notwithstanding his apparent impecuniosity, he was required to consent to judgment for a portion of the debt  as the condition of his discharge.

 

 

 

 

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