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
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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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