Legal Blog

Bankruptcy Stay

Re Brennan 2019 Ont SCJ

At a judgment debtor examination, debtor stated that he did not have an RSP. 17 days later, debtor filed for bankruptcy and admitted that he had an RSP worth $13,000. The judge determined that, were it not for the false statement, the creditor could have and would have seized the RSP. He also determined that, because no contributions had been made to the RSP within one year of the date of bankruptcy, the RSP did not fall into the bankrupt’s estate. Accordingly, the judge decided to exercise his discretion under section 69.4 of the Bankruptcy and Insolvency Act to lift the stay of proceedings and allow the creditor to seize the RSP.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.