Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 09 JUNE 2014

A Bankrupt Can't Escape A Judgment For Sexual Assault

Lerners LLP
Explore more from Lerners LLP

Under most circumstances, an order of discharge releases a bankrupt person from all debts. There are, however, exemptions that have been legislated to ensure that a bankrupt party does not escape a debt arising from certain morally blameworthy actions.

CanadaLitigation, Mediation & Arbitration
Elizabeth Grace
Elizabeth Grace
Anna Matas
Anna Matas
Author LinkedIn connections

This blog was originally published on Slaw.

Under most circumstances, an order of discharge releases a bankrupt person from all debts. There are, however, exemptions that have been legislated to ensure that a bankrupt party does not escape a debt arising from certain morally blameworthy actions. For example, an order of discharge does not release a bankrupt person from any debt arising from an award of damages by a court in civil proceedings stemming from "bodily harm intentionally inflicted, or sexual assault": Bankruptcy and Insolvency Act, RSC 1985, c B-3 (the "BIA"), section 178(1)(a.1)(i).

The case law is clear these exceptions are based on social policy considerations which prioritize a victim's right to obtain compensation over a bankrupt's right to be free of debts following discharge. Parliament has made a policy decision that a bankrupt should not be allowed to raise the shield of his or her general discharge against judgment creditors who hold

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

BLG At The SCC – What’s Coming In The Supreme Court’s Fall 2026 Sitting Schedule

The Supreme Court of Canada held its second annual ceremony marking the opening of the judicial year at its temporary home in the West Memorial Building, with Chief Justice highlighting the Court's increased caseload and architectural features. What significant constitutional and legal challenges will the Court address in its fall 2026 session, including cases on firearm regulations, Crown immunity, and vicarious liability?
CanadaLitigation, Mediation & Arbitration
Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
Article

Ontario Court Bifurcates Class Action As Practical Approach To Onerous Discovery Demands

An Ontario court granted a motion to bifurcate liability and damages stages in a class action alleging $500 million in hidden fees, finding that extensive documentary production requests were disproportionate and not relevant to determining liability. The decision addresses proportionality concerns in class actions where defendants face onerous discovery demands spanning millions of transactions over a decade.
CanadaLitigation, Mediation & Arbitration
Bennett Jones LLP
Bennett Jones LLP
Article

The Supreme Court Of Canada Reviews Québec’s Bill 21

Québec's Bill 21, enacted in 2019, bans public sector workers from wearing religious symbols and is shielded from most Charter challenges by the notwithstanding clause. The Supreme Court of Canada is now reviewing this controversial law, with a ruling expected as early as November 2026 or later in 2027. Former Minister of Justice Arif Virani discusses the court's struggle to balance competing constitutional principles in this landmark case.
CanadaLitigation, Mediation & Arbitration
Torys
Torys
Article

The Coldcard Exploit: Why Victims May Have Two Routes To Recovery

A five-year-old firmware defect in Coldcard hardware wallets has enabled attackers to systematically drain an estimated $116 million in Bitcoin from over 5,200 victims since July 2026. This unprecedented exploit raises critical questions about manufacturer liability and creates two distinct legal pathways for recovery: blockchain tracing against the perpetrators and potential litigation against Canadian manufacturer Coinkite for product defects that undermined the fundamental security promise of devices mar
CanadaLitigation, Mediation & Arbitration
WeirFoulds LLP
WeirFoulds LLP
Article

Ontario's New Road Safety Measure, And What It Means To Your Insurance Rates

If you put winter tires on your car this winter, your insurance company owes you a discount. The announcement was made by the Ontario government on October 14, 2015. As of January 1, 2016, all insurance companies operating in Ontario are required to provide a discount to their policyholders using winter tires. The announcement was made by the Ontario government on October 14, 2015. As of January 1, 2016, all insurance companies operating in Ontario are required to provide a discount to their
CanadaInsurance
Lerners LLP
Lerners LLP
Article

Demystifying The 2L Recruit: A Personal Guide To Success

Navigating the 2L law school recruitment process can feel overwhelming, but understanding what to expect at each stage—from summer coffee chats and brief OCI interviews to intensive in-firm interview weeks—can transform anxiety into confidence. Drawing from personal experience at Lerners LLP, this guide reveals how preparation, authenticity, and strategic relationship-building lead to recruitment success and finding the right firm fit.
CanadaEmployment and HR
Lerners LLP
Lerners LLP