DISCHARGE OF BANKRUPT - Debts not released by discharge

Law360 Canada ( March 15, 2018, 6:27 AM EDT) -- Appeal by Rodriguez from an order, declaring that a default judgment against him survived his discharge from bankruptcy. The judgment related to a debt arising from Rodriguez’s failure to comply with his payment obligations under a mortgage. In applying for the order under appeal, FCT Insurance and LawPro claimed that Rodriguez not only breached his mortgage obligation to PCF, but also misappropriated trust funds paid to him by mistake by his lawyer from the proceeds of the sale of the mortgaged property. FCT, the title insurer, and LawPro, the insurer for the lawyer, had obtained the default judgment they sought to have survive Rodriguez’s discharge from bankruptcy. In their pleadings against Rodriguez, they had sought only to enforce his mortgage debt. They added additional allegations against him in their application in the bankruptcy. The judge relied on this evidence in making the declaration....
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