Brown (Bankrupt), Re, 2010 SKQB 426

• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: November 17, 2010
• Jurisdiction: Saskatchewan
• Citations: 2010 SKQB 426;(2010), 364 Sask.R. 300 (QB)

Brown (Bankrupt), Re (2010), 364 Sask.R. 300 (QB)

MLB headnote and full text

Temp. Cite: [2010] Sask.R. TBEd. DE.029

In Bankruptcy and Insolvency

In The Matter Of the Bankruptcy of Daryl Ian Brown

(Court No. 17003; Estate No. 23-1170328; 2010 SKQB 426)

Indexed As: Brown (Bankrupt), Re

Saskatchewan Court of Queen's Bench

In Bankruptcy and Insolvency

Schwann, Registrar in Bankruptcy

November 17, 2010.

Summary:

A second time bankrupt sought discharge. He had two sources of income, one from employment at a mining operation and the other from a mixed farming operation, which had sustained repeated and heavy losses. He assigned into bankruptcy when those losses could no longer be offset by off-farm income.

A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, granted Brown a discharge conditional on payment of $70,000 with an order of suspension for six months.

Bankruptcy - Topic 8809

Discharge of debtor - General principles - Considerations - Value of exempt assets - A second time bankrupt sought discharge - He had two sources of income, one from employment at a mining operation and the other from a mixed farming operation, which had sustained repeated and heavy losses - He assigned into bankruptcy when those losses could no longer be offset by off-farm income - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, granted Brown a discharge conditional on payment of $70,000 with an order of suspension for six months - The court calculated the net value of Brown's assets to be close to $600,000 - His off-farm employment income was close to $140,000 in 2009 - Admitted claims in the estate came to $330,571, of which the objecting creditor was owed $103,000 - Secured debt at the time of assignment was $258,000 - The trustee had realized $39,380 to date - Brown's situation raised unique circumstances, including the significant amount of his exemptions and the fact that he would not be insolvent if he were to shed his farming operation and live exclusively off of his mining income - This situation merited the imposition of a sizeable conditional order - The fact that Brown was a second time bankrupt was also relevant - Bankruptcy was not to be used as a convenient method to periodically cleanse debts.

Bankruptcy - Topic 8863

Discharge of debtor - Suspension of discharge - Length of suspension - [See Bankruptcy - Topic 8809 ].

Bankruptcy - Topic 8922

Discharge of debtor - Conditional discharge - Considerations (incl. surplus income) - [See Bankruptcy - Topic 8809 ].

Bankruptcy - Topic 8926

Discharge of debtor - Conditional discharge - Upon payment of lump sum - [See Bankruptcy - Topic 8809 ].

Bankruptcy - Topic 8930

Discharge of debtor - Conditional discharge - When available - [See Bankruptcy - Topic 8809 ].

Cases Noticed:

Biblow (Bankrupt), Re (2009), 333 Sask.R. 95; 51 C.B.R.(5th) 303; 2009 SKQB 76 (Bktcy. Registrar), refd to. [para. 18].

Kreese, Re (1997), 45 C.B.R.(3d) 36 (Sask. Q.B. Registrar), refd to. [para. 18].

Nelson (Bankrupt), Re; Pinder (Jeffery) & Associates Ltd. v. Nelson (1995), 133 Sask.R. 178; 33 C.B.R.(3d) 292 (Q.B. Bktcy.), refd to. [para. 18].

Poettcker (Bankrupt), Re (2007), 436 A.R. 362; 38 C.B.R.(5th) 259; 2007 ABQB 718, dist. [para. 18].

Armbruster (Bankrupt), Re (2010), 362 Sask.R. 200; 500 W.A.C. 200; 2010 SKCA 125, refd to. [para. 23].

Authors and Works Noticed:

Houlden, Lloyd W., Morawetz, Geoffrey B., and Sarra, Janis P., Bankruptcy and Insolvency Law of Canada (4th Ed.) (2005 Looseleaf), vol. 3, p. 6-147 [para. 21].

Counsel:

Karl Bueckert, Pinder Bueckert & Associates Inc., Trustee;

Jim Kroczynski, for Royal Bank of Canada;

Jay Watson, for Daryl Ian Brown.

This application was heard by Schwann, Registrar, of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, who delivered the following judgment on November 17, 2010.