IN THE SUPREME COURT OF NOVA SCOTIA
IN BANKRUPTCY
Citation: Donald-Reagh (Re), 2008 NSSC 390
Date: December 19, 2008
Docket: B-31562
Registry: Halifax
District of Nova Scotia
Division No. 01
Court No. B-31562
Estate No. 51-880427
In the Matter of the Consumer Proposal of Heather Anne Donald-Reagh
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LIBRARY HEADING
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Registrar: Richard W. Cregan, Q.C.
Heard: July 11, 2008
September 12, 2008
Written Decision: December 19, 2008
Subject: Administrator’s fees in a Consumer Proposal.
Summary: A consumer proposal was in default for more than three months and thus under the Bankruptcy and Insolvency Act was deemed annulled. However, the debtor later paid the administrator the balance owing on the proposal.
Issue: Whether the administrator was entitled to take fees on the balance as the proposal was annulled when the balance was paid.
Result: There was no existing proposal under the BIA and thus no basis for entitlement to the fee. The money was paid to the administrator for the purpose of distribution to the creditors. Thus the administrator held it in trust for them and it should be paid to them without any deduction for fees.
THIS INFORMATION SHEET DOES NOT FORM PART OF THE COURT’S DECISION.
QUOTES MUST BE FROM THE DECISION, NOT THIS LIBRARY SHEET .