Stay of proceeding and MEP
My ex-spouse claimed bankruptcy in 2012. I have a file registered with MEP and they had just recently enforced arrears and the account was up to date at the time of his bankruptcy and wage garnishment in place. He didn’t get discharged because he owes his trustee over $7,000. So in Jan 2014 his trustee had tried to take him to court but he didn’t show, the case was adjourned indefinitely and MEP was sent a stay of proceedings. Mep says they cannot enforce the file right now because of the stay. However the arrears on the file are new, starting in Jan 2014, so should not have been included in the bankruptcy. I need to know if this new debt can be protected by the stay of proceedings?
You should make this point to MEP.
They will be able to research the issue and give you an answer.
The applicable section of the Bankruptcy and Insolvency Act is as follows:
Stay of Proceedings
Marginal note: Stay of proceedings — notice of intention
69. (1) Subject to subsections (2) and (3) and sections 69.4, 69.5 and 69.6, on the filing of a notice of intention under section 50.4 by an insolvent person,
(a) no creditor has any remedy against the insolvent person or the insolvent person’s property, or shall commence or continue any action, execution or other proceedings, for the recovery of a claim provable in bankruptcy,