What is the test for reducing or cancelling arrears in a personal injury case?
British Columbia, Canada
The following excerpt is from M.J.W. v. M.G.W., 2012 BCSC 768 (CanLII):
Insofar as arrears are concerned, Earle v. Earle provides the following examples: a. Arrears will only be cancelled if the person is unable to pay now and will be unable to pay in the future. b. A reduction or a cancellation requires detailed and full financial disclosure, under oath (usually in the form of an affidavit) that at the time the payments were to be made: i. the change was significant and long lasting and ii. the change was real and not one of choice and iii. every effort was made to earn money (or more money) during the time in question, and those efforts were not successful.
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