What is the test for cancelling a claim for non-payment of mortgage arrears?

J.O. also referred me to the decision of Labell v. Labell, 2006 BCCA 45. This case stands for the principle that a person’s present or future inability to pay arrears is not a valid reason to cancel the arrears. This principle applies even where there is a very slim chance that the person will be able to pay the arrears in the present or future. The court appears to draw a distinction between present and future ability to pay and the change of previous circumstances that have resulted in arrears accumulating. The result is, if the court finds it would be grossly unfair to cancel arrears, then such arrears should not be cancelled just because the payor appears to have only a slim ability to pay such arrears at present or in the future. Analysis