A summary of recent Canadian insolvency-focused court decisions.

In the Matter of the Bankruptcy of Lee Hanlon

Is pre-bankruptcy defamatory conduct a bar to discharge? The Bankrupt brought an application for an absolute discharge. One of his creditors, who obtained a judgment and costs against him in a defamation action, opposed the discharge. The proven claims in his bankruptcy consisted of the…

Lokhandwala v. Khan, 2021 ONSC 2324

What is the test for the transfer of bankruptcy proceedings to another court? The husband and wife married in September 2002 and separated in September 2018. After immigrating to Canada, the husband incorporated Cellicon for the purpose of operating his cell phone business. Because of…

M.O.S. MortgageOne Solutions Ltd. v. Heidary, 2021 ONSC 1937

Does a consent judgment on a fraud action with no mention of fraud on its face survive bankruptcy? MOS is a licenced mortgage brokerage. It held a third charge against a property owned by Heidary. MOS and Heidary agreed to the terms of a new…