Digest: LaSwisse, Re (Bankrupt), 2018 SKQB 123

• Date: April 26, 2018

Reported as: 2018 SKQB 123

Docket Number: BKY 311/17 JCR , QB17513

Court: Court of Queen's Bench

Date: 2018-04-26

Judges:

• Thompson

Subjects:

• Bankruptcy and Insolvency � Conditional Discharge

Digest: The bankrupt�s application for discharge was opposed by Saskatchewan Government Insurance (SGI). The majority of the bankrupt�s debt to SGI arose out of two motor vehicle accidents that occurred in 2011 and 2014. The bankrupt�s driver�s licence had been suspended at the time of the accidents. SGI paid out $2,700 in regard to the 2011 accident and $9,800 in regard to the second. SGI alleged that two s. 173 facts existed in relation to the bankruptcy: 1) the bankrupt chose to assign in bankruptcy even though he had the resources to make a viable proposal. The trustee reported that the bankrupt could not have made a viable proposal because at the time of his bankruptcy, the bankrupt declared $67,700 in unsecured liabilities and his assets were valued at $3,250. According to his income and expense statement, he had no surplus income; and 2) the bankrupt could not justly be held responsible for the fact that his assets were not equal to 50 cents on the dollar of his unsecured liabilities. The bankrupt caused two accidents at times when he knew his licence was suspended. The bankrupt testified, however, that he should not be held accountable for the debt of $2,700 because he was not aware that his licence was suspended in 2011. HELD: The court granted a conditional discharge. The bankrupt was ordered to satisfy the conditions that: he report to the trustee annually for the next two years and make all payments to the requirements of the Superintendent�s Standards in the amount that a bankrupt would be required to pay during a regular bankruptcy term; and he pay the trustee $4,330. That amount was 50 percent of the amount proven by SGI in relation to the accident that occurred when the bankrupt knew that he was driving without a licence. It was levied to deter the bankrupt from continuing to act recklessly financially, but would not create undue hardship for him and his children. With respect to SGI�s objections, the court accepted: 1) the trustee�s report that the bankrupt could not have made a...