Can a bankrupt be ordered to pay a creditor’s damages as a condition of his discharge?

Nova Scotia, Canada


The following excerpt is from Maas (Re), 2007 NSSC 218 (CanLII):

There is a line of authority suggesting that it may. The leading case is Kozack v. Richter, [1974] SCR 832, (1973), 1973 CanLII 166 (SCC), 20 C.B.R. (NS)223. In that case, a creditor obtained a judgment against the bankrupt for injuries resulting from a motor vehicle accident. The bankrupt, notwithstanding he had a large family and a modest income, was ordered to pay fifty cents on the dollar as a condition of his discharge. The principle articulated, as stated at page 226 in the C.B.R., is: “ . . . the Act was never intended to enable a judgment debtor to get rid of a judgment for damages and with no other purpose to serve than the convenience and comfort of the debtor.”

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