Armitstead (Re), 2011 ABQB 736

Court of Queen ’ s Bench of Alberta Citation: Armitstead (Re), 2011 ABQB 736 Date: 20111125 Docket: BE03 1295676 Registry: Edmonton In the Matter of the Bankruptcy of Dale Geoffrey Armitstead _______________________________________________________ Memorandum of Decision of W. S. Schlosser, Registrar in Bankruptcy _______________________________________________________ [ 1 ] This matter came before me on November 22. Mr. Goth appeared for the Trustee. The Bankrupt appeared in person.

After hearing the representations of the Trustee and the Bankrupt, it was my inclination to grant an Order setting terms for discharge. It is my decision that this conditional order be modified. [ 2 ] The Order suspended discharge until surplus income of $19,206.94 had been paid, which would postpone discharge for another two years. Mr.

Armitstead has been in bankruptcy now for nearly two years. [ 3 ] In my view, the rehabilitation of the debtor and an orderly and fair distribution for creditors requires modification of the Order. [ 4 ] The facts as represented by the Bankrupt and largely accepted by the Trustee are that the Bankrupt is sole provider for two minor children. The Bankrupt ’ s estranged wife lives in the former matrimonial home. Even on the most pessimistic assessment, there may be some equity that would go to creditors. The “ lot value ” of this property is estimated by the Bankrupt to be in the area of $100,000.00.

There is apparently a mortgage of now approximately $31,000.00, which is in good standing. (The form 79 Report showed $38,000.00.) Therefore, even if there is an exemption that applies to this property, there is likely to be significant equity that would go to creditors. [ 5 ] The Bankrupt ’ s matrimonial property action is not resolved. Apparently, the Bankrupt ’ s estranged wife has gone through a

series of lawyers. This has resulted in delay after delay. The Bankrupt has spent money on legal fees in an attempt to bring the matrimonial property action to a conclusion. Until this happens or unless the Trustee takes over, this asset will be kept out of the hands of the creditors. [ 6 ] Given the Bankrupt ’ s desire to make a fresh start, which would also benefit his minor children, and given the Bankrupt ’ s personal efforts to realize upon the matrimonial home, which, even if an exemption applies, would be to the benefit of the creditors, very little would be served by prolonging discharge.

As the Bankrupt is the sole provider for two minor children, delaying discharge will directly and negatively impact them. The creditors ’ interests will best be served by accelerating the process to realize on the matrimonial home. [ 7 ] Accordingly, my revised direction is the Bankrupt pay surplus income of $800.00 a month for a period of eight months and that the Trustee be directed to assert its remedy of partition and sale against the matrimonial home for the benefit of the creditors. The Trustee is also directed to determine whether an exemption applies to a portion of the available equity.

The Trustee is further directed to provide a revised Order for my signature. Heard on the 22 nd day of November, 2011. Dated at the City of Edmonton, Alberta this 25 th day of November, 2011. W. S. Schlosser Registrar in Bankruptcy Appearances: Goth & Company Inc. Trustee Dale Geoffrey Armitstead in person