In a mini-trial of an agreed issue arising from judgment-enforcement litigation, the court held that after the debtor's bankruptcy and discharge, any claim under the Fraudulent Conveyances Act belonged to the bankruptcy estate and could only be pursued by the trustee or a creditor acting under s. 38 of the Bankruptcy and Insolvency Act.
The plaintiff's motion to continue personally against the bankrupt debtor on the theory that the claim survived discharge under s. 178(1)(d) was dismissed.
On the factual issue tried, the court found that a series of real estate transfers and mortgage transactions involving family members and related parties were undertaken with intent to defeat, hinder or delay the plaintiff's collection efforts.
The court made no liability ruling on remaining non-FCA causes of action and reserved costs.
