Crowe (Bankrupt), Re, (2014) 426 N.B.R.(2d) 186 (QB Reg.)

Court:Court of Queen's Bench of New Brunswick
Case Date:June 18, 2014
Jurisdiction:New Brunswick
Citations:(2014), 426 N.B.R.(2d) 186 (QB Reg.);2014 NBQB 209
 
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Crowe (Bankrupt), Re (2014), 426 N.B.R.(2d) 186 (QB Reg.);

    426 R.N.-B.(2e) 186; 1110 A.P.R. 186

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Temp. Cite: [2014] N.B.R.(2d) TBEd. SE.003

Renvoi temp.: [2014] N.B.R.(2d) TBEd. SE.003

In The Matter Of the Bankruptcy of Michael James Crowe

(NB 19778; 51-1619168; 2014 NBQB 209; 2014 NBBR 209)

Indexed As: Crowe (Bankrupt), Re

Répertorié: Crowe (Bankrupt), Re

New Brunswick Court of Queen's Bench

In Bankruptcy and Insolvency

Evans, Registrar

September 3, 2014.

Summary:

Résumé:

At issue on this bankruptcy discharge hearing was whether the bankrupt should be responsible for surplus income of $4,734 as calculated by the trustee under s. 68 of the Bankruptcy and Insolvency Act.

The Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, granted a discharge conditional on the bankrupt paying surplus income of $1,500, at a rate not less than $100/month, with payments to commence in October 2014.

Bankruptcy - Topic 8922

Discharge of debtor - Conditional discharge - Considerations (incl. surplus income) - The Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, stated that "As a result of the summary procedures in the Bankruptcy and Insolvency Act, Registrars and Deputy Registrars across the country often hear a great number of matters in a short period of time without the ability to know in advance what will be contested and what will not. As such the court relies upon the trustees to provide all pertinent information so that informed decisions may be made: Re Kultgen (2001), 23 C.B.R.(4th) 167. Therefore, when a discharge is opposed by the trustee on the basis of non-payment of surplus income, which opposition is subsequently challenged by the bankrupt person, evidence of the monthly income, expenses and surplus calculations should be submitted so informed decisions may be made." - See paragraph 29.

Bankruptcy - Topic 8922

Discharge of debtor - Conditional discharge - Considerations (incl. surplus income) - At issue was whether the bankrupt should be responsible for surplus income of $4,734 as calculated by the trustee under s. 68 of the Bankruptcy and Insolvency Act - The matter was complicated by the presence of two additional children in the bankrupt's home every weekend, for whom he paid child support - The trustee stated that it had to use a family of five in determining surplus income, not seven as the bankrupt had requested - The trustee deducted the monthly child support payable by the bankrupt for the additional two children as non-discretionary expenses, and argued that for it to consider any additional expenses for a family of seven on the weekends when those children were in the bankrupt's home would be allowing "double credit" - The Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, rejected the argument - The Registrar referred to the Office of the Superintendent of Bankruptcy Canada's Directive Number 11-R2, Family Unit (paras. 3, 4) - The Registrar held that the additional children contributed to this bankrupt's monthly expenses in his own household (a discretionary expense), which was a sum separate and apart from the monies payable to the mother for the children's support (a non-discretionary expense) - The Registrar granted a discharge conditional on the bankrupt paying surplus income of $1,500 - See paragraphs 1 to 33.

Bankruptcy - Topic 8922

Discharge of debtor - Conditional discharge - Considerations (incl. surplus income) - At issue on a bankruptcy discharge hearing was whether the bankrupt had surplus income and, if so, the amount thereof - The matter was complicated by the presence of two additional children in the bankrupt's home every weekend, for whom he paid child support - The Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, determined, contrary to the bankruptcy trustee's office, that $1,000/month for groceries was reasonable for a family of five, let alone a family of seven for 25 to 30 % of the time - See paragraph 26.

Bankruptcy - Topic 8945

Discharge of debtor - Opposition to discharge - Procedure - [See first Bankruptcy - Topic 8922 ].

Faillite - Cote 8922

Libération du débiteur - Libération conditionnelle - Facteurs considérés - [Voir Bankruptcy - Topic 8922 ].

Faillite - Cote 8945

Libération du débiteur - Opposition à la libération - Procédure - [Voir Bankruptcy - Topic 8945 ].

Cases Noticed:

McLeod (Bankrupt), Re, [2001] B.C.T.C. 1150; 2001 BCSC 1150 (S.C. Reg.), refd to. [para. 18].

Jakola (Bankrupt), Re, [2005] O.T.C. Uned. 678; 13 C.B.R.(5th) 198 (S.C.), refd to. [para. 19].

Jiloca (Bankrupt), Re, [2014] B.C.T.C. Uned. 538 (S.C. Reg.), refd to. [para. 21].

Links v. Robinson (1971), 16 C.B.R.(N.S.) 180 (Alta. C.A.), refd to. [para. 21].

Flostrand (Bankrupt), Re, [2013] B.C.T.C. Uned. 1809 (S.C. Reg.), refd to. [para. 21].

Kultgen (Bankrupt), Re (2001), 287 A.R. 40; 23 C.B.R.(4th) 167 (Q.B. Reg.), refd to. [para. 21].

Authors and Works Noticed:

Canada, Office of the Superintendent of Bankruptcy Canada: Directive Number 11-R2, Family Unit, paras. 3, 4 [para. 25].

Counsel:

Avocats:

Grant Thornton Poirier Limited, Trustee;

Michael James Crowe, on his own behalf.

This matter was heard on February 19 and June 18, 2014, by Evans, Registrar, of the New Brunswick Registrar of Queen's Bench, In Bankruptcy and Insolvency, who delivered the following decision on September 3, 2014.

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