In Benzacar v. Terk (Ont CA, 2023) the Court of Appeal considered a rarely-advanced appeal from a R60.08 garnishment motion.
In this passage, the court clarifies aspects of 'insolvency', here in the context of an allegation in a garnishee statement:
[48] The assertion that 604 was insolvent as its bank had called in its loans was irrelevant to the existence and continuing accrual of debts to Mr. Terk. Insolvency “is the factual situation that arises when a debtor is unable to pay its creditors”: Century Services Inc. v. Canada (Attorney General), 2010 SCC 60, [2010] 3 S.C.R. 379, at para. 10. It does not wipe out nor negate the existence of the debts. There was no evidence that 604 was the subject of any formal insolvency proceedings that would stay enforcement of debts. And as I have already pointed out, that Mr. Terk was not taking his salary did not mean that 604 was not, and would not be, indebted to him for it.
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