Is a bankrupt required to pay a portion of a judgment?

Nova Scotia, Canada


The following excerpt is from Meehan (Re), 2009 NSSC 374 (CanLII):

Reliance was made on Kozack v. Richter (1973), 1973 CanLII 166 (SCC), 20 C.B.R. (NS) 223 (S.C.C.), where a bankrupt was required to pay a portion of a judgment as a condition of discharge, as it was held that he could be justly held responsible. The judgment resulted from an automobile accident. There was a finding of “wilful and wonton misconduct on the bankrupt’s part.” The court was mindful of the danger of encouraging debtors to say: “There is no use suing me, if you lose you will have to pay the costs, if you win I will make an assignment in bankruptcy and you will get nothing.” (page 225).

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