Opposed bankruptcy discharge where the trustee alleged arrears of surplus income and non-compliance with income reporting obligations.
The trustee had calculated surplus income strictly according to the Office of the Superintendent of Bankruptcy’s Directive 11 standards and believed he had no discretion to consider the bankrupts’ personal and family circumstances.
The court held that under s. 68(3) of the Bankruptcy and Insolvency Act trustees must exercise professional judgment and consider both the Superintendent’s Standards and the bankrupt’s personal and family situation when determining surplus income.
Because the trustee and bankrupts ultimately agreed the guideline calculation produced hardship and that the amounts already paid were appropriate, the court fixed the surplus income at that amount.
Absolute discharges were granted.
