New Judgment Clarifies When Bankruptcy Debt May Be Declared Non-Releasable

The Québec Superior Court recently rendered a judgment (Francis v. Adobe 2018 QCCS 2547) confirming that a bankrupt's debt may be declared non-releasable by a discharge order pursuant to section 178 of the Bankruptcy and Insolvency Act (the "Act"), even when said discharge order has not yet been rendered or when the bankrupt's discharge has been suspended or granted conditionally pursuant to section 173 of the Act. BLG represented the applicant, Adobe Systems Incorporated ("Adobe" or the "Creditor"), in this filing.

The Facts

Adobe, one of Pierre Francis' unsecured creditors (the "Bankrupt"), had previously contested the Bankrupt's motion to be released from his bankruptcy. As a result, judgment was rendered by the registrar in bankruptcy staying the Bankrupt's discharge for a period of five years as well as making it conditional to a payment of $85,000 to the trustee for the benefit of the Bankrupt's creditors. Therefore, at the time of the presentation of the