March 29 – Bankruptcy and Support

“Under s. 178(1) of the BIA (Bankruptcy Insolvency Act), an order of discharge does not release the bankrupt from any debt or liability under an agreement for maintenance and support of a spouse or former spouse. The word “support” in the BIA does not include a division of matrimonial property. However, “support” is not defined in the BIA. Whether a particular amount claimed pursuant to a separation agreement is “support” within the meaning of the BIA is a question of fact to be determined with regard to the words of the agreement and the circumstances under which it was entered into. A particular disposition of property which is intended to be maintenance or a substitute for it can fall within s. 178 of the BIA and yet not qualify as support under the Divorce Act, R.S.C. 1985, c. 3 (2nd Supp.).”

Shea v. Fraser, 2007 ONCA 224 (CanLII)(headnote)