The applicant bankrupt brought a motion arguing that a previous family law costs award of $25,280, which was ordered to survive bankruptcy, was released because the respondent creditor failed to file a proof of claim in the bankruptcy proceedings.
The court held that while the failure to file a proof of claim prevented the respondent from sharing in the bankruptcy distribution, it did not release the debt under section 178 of the Bankruptcy and Insolvency Act.
The costs order survived the bankruptcy discharge, and the applicant was ordered to pay the costs of the motion.
