The appellant and respondent jointly owned a property and had joint debt with an execution creditor.
After the property was sold under power of sale, a surplus remained.
The appellant had filed a consumer proposal, triggering a stay of proceedings under the Bankruptcy and Insolvency Act.
The application judge ordered the execution creditor's debt to be paid from the total surplus before dividing the remainder equally between the appellant and respondent.
The Court of Appeal allowed the appeal, holding that the stay of proceedings precluded the execution creditor from recovering against the appellant's share.
The joint tenancy was severed, and the execution creditor's debt could only be paid from the respondent's 50 percent share of the surplus.