The appellant, a bankrupt who suffered severe injuries in a motor vehicle accident, appealed a motion judge's order regarding the calculation of his surplus income under s. 68 of the Bankruptcy and Insolvency Act.
The motion judge had included financial assistance payments, statutory accident benefits settlement proceeds, and portions of a personal injury settlement in the appellant's total income, resulting in a surplus income payment obligation and a $15,000 penalty for failing to disclose the settlements.
The Court of Appeal allowed the appeal in part, finding that the financial assistance loan, legal costs, and damages for future care and housekeeping should not have been included in the total income calculation.
The surplus income payment was set aside, but the $15,000 penalty for non-disclosure was affirmed.