Presley (Bankrupt), Re, (2012) 545 A.R. 316 (QB Reg.)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: May 16, 2012
• Citations: (2012), 545 A.R. 316 (QB Reg.);2012 ABQB 437

Presley (Bankrupt), Re (2012), 545 A.R. 316 (QB Reg.)

MLB headnote and full text

Temp. Cite: [2012] A.R. TBEd. JL.067

In The Matter Of the Bankruptcy of Beverly Lydia Presley

(BE01 168035)

In The Matter Of the Bankruptcy of Percy Darwin Presley

(BE01 168062; 2012 ABQB 437)

Indexed As: Presley (Bankrupt), Re

Alberta Court of Queen's Bench

In Bankruptcy

Judicial District of Calgary

Hanebury, Registrar

July 3, 2012.

Summary:

The Presleys (bankrupts) were granted conditional orders of discharge which required the payment of certain funds prior to May 31, 2012. In December 2011, Mr. Presley received lottery winnings of $50,000, which he split equally with Ms. Presley. After payment of the conditional orders, a surplus was left. The trustee sought direction as to whether the excess funds should be the property of the trustee to be used for the benefit of the unsecured creditors or the property of the now-discharged Presleys.

A Registrar of the Alberta Court of Queen's Bench, in Bankruptcy, directed that the lottery winnings held by the trustee were the property of the bankrupts' estates and available to the creditors.

Bankruptcy - Topic 440.3

Property of bankrupt - Particular property - After-acquired property - The bankrupts (husband and wife) were granted conditional orders of discharge which required the payment of certain funds prior to May 31, 2012 - In December 2011, the husband received lottery winnings of $50,000, which he split equally with his wife - After payment of the conditional orders, a surplus was left - The trustee sought direction as to whether the excess funds should be the property of the trustee to be used for the benefit of the unsecured creditors or the property of the now-discharged bankrupts - A Registrar of the Alberta Court of Queen's Bench, in Bankruptcy, agreed with the law as stated in Sindaco (Bankrupt), Re (2003), that the lottery winnings held by the trustee were the after-acquired property of the bankrupts' estates and available to the creditors.

Cases Noticed:

P. (Bankrupt), Re, [2000] B.C.T.C. Uned. 54; 2000 BCSC 71 (Master), refd to. [para. 10].

Speranza (Bankrupt), Re (2010), 358 N.B.R.(2d) 184; 924 A.P.R. 184; 2010 NBQB 139 (Reg.), refd to. [paras. 10, 21].

Sindaco (Bankrupt), Re, [2003] B.C.T.C. 1396; 2003 BCSC 1396 (Master), agreed with [para. 13].

Gray, Re (1988), 67 C.B.R.(N.S.) 161 (Ont. S.C.), refd to. [para. 15].

Hawkins, Re; Ex parte Official Receiver, [1892] 1 Q.B. 820 (C.A.), refd to. [para. 16].

Harrison (Bankrupt), Re (1996), 109 Man.R.(2d) 107 (Q.B. Master), refd to. [para. 18].

Kratko (Bankrupt), Re (2003), 237 Sask.R. 228; 2003 SKQB 341 (Reg.), refd to. [para. 19].

Hoff (Bankrupt), Re, 2003 ABQB 300, refd to. [para. 20].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 67(1)(c) [para. 8].

Counsel:

Jim Jones, for MNP Ltd. Trustee in Bankruptcy.

This matter was heard on May 16, 2012, before Hanebury, Registrar, of the Alberta Court of Queen's Bench, in Bankruptcy, Judicial District of Calgary, who delivered the following memorandum of decision on July 3, 2012.