KELLEY (RE), 2022 ABQB 465


4.34: Stay of proceedings on transfer or transmission of interest

Case Summary

The Applicant appealed a Disallowance of a Proof of Claim in Bankruptcy. The underlying bankruptcy matter was whether there can be a matrimonial property-based claim by the spouse of the bankrupt.

Master Farrington noted that Rule 4.34 acts to stay matrimonial property proceedings in the event of bankruptcy but that this stay could be lifted if necessary. In the current proceedings, Master Farrington noted that no matrimonial property action was filed, and there was nothing to stay. To be careful, Master Farrington lifted the stay “if necessary” while noting that he did not think it was necessary in the present case.

The spouse was entitled to pursue a claim under the Matrimonial Property Act, RSA 2000, c M-8, provided that the Claim was filed within two months of issuance of Master Farrington’s reasons. The trustee in bankruptcy could then decide whether to intervene.

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