Smith (Bankrupt), Re, 2015 SKQB 29

• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: January 30, 2015
• Jurisdiction: Saskatchewan
• Citations: 2015 SKQB 29;(2015), 468 Sask.R. 240 (QB Reg.)

Smith (Bankrupt), Re (2015), 468 Sask.R. 240 (QB Reg.)

MLB headnote and full text

Temp. Cite: [2015] Sask.R. TBEd. FE.031

In The Matter Of the Bankruptcy of Doreen Katherine Smith

(23-1832233; 2015 SKQB 29)

Indexed As: Smith (Bankrupt), Re

Saskatchewan Court of Queen's Bench

In Bankruptcy and Insolvency

Thompson, Registrar

January 30, 2015.

Summary:

Smith assigned into bankruptcy in January 2014. The trustee sought an order adjourning her absolute discharge until she had fulfilled her obligation to deal with a non-exempt interest in her family home. Smith submitted that she had disposed of the interest under a separation agreement entered into with her estranged husband in March 2013.

A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, suspended Smith's discharge for six months.

Bankruptcy - Topic 8897

Discharge of debtor - Grounds for refusal - Failure to perform duties - Smith assigned into bankruptcy in January 2014 - The trustee sought an order adjourning her absolute discharge until she had fulfilled her obligation to deal with a non-exempt interest in her family home - Smith submitted that she had disposed of the interest under a separation agreement entered into with her estranged husband in March 2013 - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, suspended Smith's discharge for six months - Smith failed to make sufficient efforts to meet her duty to disclose to the trustee that she believed that she had disposed of her interest in the home in the year prior to the bankruptcy - The trustee was only made aware of the separation agreement after it had objected to Smith's automatic discharge - Property was a central issue in a bankruptcy - The trustee made decisions based on a risk assessment that depended, fundamentally, on an accurate understanding of the nature and value of the bankrupt's property interests - The duty to disclose dispositions occurring within a year of bankruptcy was fundamental to the general duty to assist the trustee - It would be an affront to the system's integrity if no consequence was imposed to address Smith's failure to adequately disclose her interest - A condition of payment was not appropriate - Smith was a retired pensioner of 68 and had no surplus income - The parties agreed that there was little to realize from the interest or from Smith.

Bankruptcy - Topic 8902

Discharge of debtor - Absolute discharge - Suspension of absolute discharge - [See Bankruptcy - Topic 8897 ].

Cases Noticed:

MacFarlane (Bankrupt), Re (2008), 322 Sask.R. 171; 2008 SKQB 417 (Bktcy. Reg.), refd to. [para. 7].

Hofmann (Bankrupt), Re (2008), 325 Sask.R. 278; 2008 SKQB 363 (Bktcy. Reg.), refd to. [para. 7].

Shakell, Re (1988), 70 C.B.R.(N.S.) 270 (Ont. S.C.), refd to. [para. 7].

R. v. Farrell (2010), 70 C.B.R.(5th) 270; 2010 ONCJ 391, refd to. [para. 25].

Counsel:

Doreen Smith, the Bankrupt;

Anne Hardy, for the Bankrupt;

Marla Adams, for the Trustee, Deloitte Restructuring Inc.

This application was heard by Thompson, Registrar, of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, who delivered the following judgment on January 30, 2015.