A summary of recent Canadian insolvency-focused court decisions.
Can a statute-barred claim still be a provable claim in bankruptcy if it was included on the debtor's statement of affairs? The bankrupt gave the appellant a promissory note in the amount of $250,000 dated April 10, 2001 due on October 10, 2001. On September…
Does the duty of good faith extend to contract disclaimers? Laurentian University (“Laurentian”) experienced a financial crisis and sought protection under the Companies’ Creditors Arrangement Act. Since February 1, 2021, Laurentian has undergone an overhaul of its entire financial and operational structure in order to create…
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…
Can a declaration under s. 178 of the Bankruptcy and Insolvency Act be made on a motion for default judgment?
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…
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…
Should senior secured lenders be placed in a separate class from subordinate secured lenders?
When is a connection between the deceitful conduct and the loss too remote to grant an exclusion under section 178(1)(e) of the BIA?
Can a lender obtain protection from the court against claims of improvident sale without the involvement of a receiver in the sale process?
Is a statue-barred debt a claim provable in bankruptcy?