J. Bankruptcy No. 4344 Estate No. 023291 J.C.R. IN THE QUEEN'S BENCH PROVINCE OF SASKATCHEWAN IN BANKRUPTCY AND INSOLVENCY IN THE MATTER OF THE BANKRUPTCY OF LARRY PETER CLOUTIER Larry Peter Cloutier, Bankrupt P.M. Tomney, Deloitte Touche Inc., Trustee Julie Rogers-Glabush, for Her Majesty the Queen in Right of Canada, as represented by the Minister of National Revenue, objecting creditor JUDGMENT MAURICE J. HERAUF, July 22, 1999 Registrar in Bankruptcy This discharge application involves another bankrupt who is self employed and through indifference, disregard and neglect does not pay his taxes. This is the second bankruptcy for this bankrupt. The sole unsecured creditor is Revenue Canada with a proved claim of just under $89,000.00 for unpaid income tax and unremitted G.S.T. It should come as no surprise that Revenue Canada was also the major creditor in the first bankruptcy. The bankrupt has horrendous record for non-payment of his tax obligations which stretches back at least 15 years. Not only does the bankrupt not pay his taxes he also does not file his returns. The bankrupt is 43 years of age, in good health and has no dependants. He is a self-employed contractor and has an enviable income. In fact, the only issue at the discharge hearing was the determination of the amount of surplus income available to pay toward conditional order. The trustee calculated surplus income at $435.00 per month and recommended a conditional order requiring the payment of $7800.00. It would take approximately 18 months to complete the terms of the order. The objecting creditor calculated surplus income at $750.00 and requested a four year conditional order providing for monthly payments of this sum. It should come as no surprise that the bankrupt preferred the recommendation of the trustee. have carefully reviewed the financial material on file and considered the submissions of the parties. I have concluded that the bankrupt can safely accommodate a payment of $500.00 per month for three years without jeopardizing his ability to pay toward his current tax obligations. Therefore, there will be an order requiring the bankrupt to pay to the trustee the sum of $18,000.00 for distribution to the unsecured creditors. The bankrupt shall pay this amount by monthly instalments of $500.00 per month commencing September 1, 1999 and continuing on the 1st of each month thereafter until paid in full. Judgement interest will accrue on any payment in arrears. The right of prepayment exists. Since the bankrupt denies any knowledge of his obligation to make regular instalment payments on his self-employment income would be remiss if did not offer the court’s assistance to educate the bankrupt relating to this obligation. Accordingly, there will also be an order that during the term of the conditional order the bankrupt will be required to make regular instalment payments on his self-employment income and comply with income tax and G.S.T. filing requirements. The objecting creditor is entitled to costs of $400.00 payable out of the estate. Registrar in Bankruptcy
The bankrupt was self-employed and failed to pay his taxes, owing Revenue Canada $89,000. The trustee calculated surplus income at $435 per month and recommended a conditional order of discharge requiring the payment of $7,800. Revenue Canada objected, requesting a conditional order for monthly payments of $750 over 4 years. HELD: Conditional order of discharge granted. The court found that the bankrupt was 43 years old, in good health and with no dependents. The bankrupt was also a self-employed contractor with an 'enviable' income. Following a review of the bankrupt's financial material on file, the court ordered the bankrupt to pay $500 per month for 3 years, to make regular installment payments on his self-employment income and comply with tax filing requirements.