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The court dismissed an application to annul a consumer proposal and bankruptcy despite finding the debtors' property was significantly undervalued.
The applicants, who held a Small Claims Court judgment against the respondents, brought an application to annul the respondents' bankruptcy filings.
They contended that the respondents' property was significantly undervalued in their Bankruptcy and Insolvency Act (BIA) filings, suggesting that the respondents were not insolvent or had abused the court process.
The court accepted the applicants' expert appraisal, which valued the property substantially higher than declared by the respondents.
However, the application was dismissed.
The court found that the applicants failed to demonstrate that Mrs. Fast was not an insolvent person or had abused the process, and that Mr. Fast was eligible to make his consumer proposal as he was already bankrupt at the time of filing.