The respondent in the underlying family proceeding sought a declaration that a costs sanction imposed for civil contempt had been extinguished by her discharge from bankruptcy.
The sanction arose from repeated breaches of court-ordered access involving the parties’ child.
The court held that it had jurisdiction to determine whether the debt survived bankruptcy.
Applying s.178 of the Bankruptcy and Insolvency Act, the court found the costs award constituted a sanction similar to a fine or penalty imposed for an offence and therefore survived bankruptcy.
The court also rejected the argument that the debt had been satisfied through alleged set-off for childcare, airfare expenses, or matrimonial property proceeds.
