Can 407 ETR Debts Be Discharged in Bankruptcy or a Consumer Proposal?
In 2015, the Supreme Court of Canada ruled that debts owed to 407 ETR Highway in Canada can be discharged when claiming bankruptcy or in a consumer proposal.
The Supreme Court decided that federal bankruptcy law is paramount to provincial legislation, meaning that 407 ETR debts will be discharged during bankruptcy.
The 407 is also unable to override bankruptcy law with their power of plate denial.
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What are 407 debts?
If you live in the Greater Toronto Area then you may use the 407 ETR Highway to commute to work or even just travel around to visit friends and family members.
The 407 was purchased by a private company and the Highway 407 Act in 1998 gave the 407 the right to collect tolls.
If you didn’t pay this toll, then they also had the power to suspend your vehicle permit issued by Ontario’s Registrar of Motor Vehicles.
This meant that if you didn’t pay off your 407 debts and went bankrupt, you wouldn’t be able to renew your vehicle license plate.
This could lead to some serious problems in regards to your commute to work or other travel options, making it challenging to continue working after making your claim or submitting your proposal.
However, in a ruling that was released on December 19, 2013, judges from the Court of Appeal for Ontario ruled that denying license plate renewal for people that owed money to the 407 ETR and have filed for bankruptcy or a consumer proposal contradicts the “fresh start” principles of the Bankruptcy and Insolvency Act.
The Ontario Court of Appeal ruled that 407 ETR debts are dischargeable in bankruptcy, but the 407 ETR continued to appeal this until it reached the Supreme Court.
However, the Supreme Court ultimately decided that federal law takes priority over provincial laws.
It was decided that discharging someone from 407 ETR debts was consistent with bankruptcy laws and that it allowed someone to achieve the fresh start that comes with claiming bankruptcy or submitting a consumer proposal.
As a result, 407 ETR lost its power to deny license plate renewal based on ETR toll debt, giving those that use the highway the ability to achieve the fresh financial start they’re looking for.
Commuting to work after bankruptcy
It’s common for people to continue working even after filing for bankruptcy.
Despite what many people think, the process doesn’t mean that you will lose all of your assets.
In fact, you can even keep your vehicle up to a certain value provided that it’s being used for your work commute.
However, if you live in the Greater Toronto Area and use the 407 to commute to work, then you may be concerned about any debts that you may have built up regarding its use.
Since the 407 is a tolled highway with privately leased segments, you’re expected to pay a certain amount of money to use the 407.
This could lead to debt that might make it difficult for you to continue commuting through the 407 and could even lead to the denial of a license plate issuance or renewal.
However, since the landmark ruling in 2015, the Supreme Court of Canada ruled that 407 ETR debts are dischargeable when claiming bankruptcy.
The 407 can no longer deny plate renewal for debts discharged via a bankruptcy or consumer proposal.
If you have filed for bankruptcy after November 13, 2015, the ETR will remove any plate restrictions imposed on you and also clear the debts that you owe to them.
As long as you have no new 407 debts or debts with the Ministry of Transport, you’ll be able to discharge these debts and continue using the 407.
Bankruptcy claims in Canada
Our team at Bankruptcy Canada consists of some of the most experienced and knowledgeable financial experts in the country.
We offer sound advice on topics such as bankruptcy so that our clients can live debt-free with financial freedom.
When you’ve been swarmed with debts and relief options are no longer effective, claiming bankruptcy can be one of the fastest ways to wipe your debt and start fresh.
If you don’t have many assets and lots of unsecured debt, claiming bankruptcy can be one of the fastest and most reliable ways to solve your problems.
You also have the option of filing a consumer proposal if you’re in debt but have a reliable source of income and assets that you want to protect.
If you feel that a bankruptcy claim is the best way for you to get a fresh financial start, then don’t hesitate to contact us today at Bankruptcy Canada.
We’d be happy to assist you and provide you with the support you need to complete your claim in the shortest amount of time.
With over 430 trustee offices around Canada and over 200,000 happy Canadian clients since 1999, we’re confident that we can provide you with an outstanding quality of service.
Discharging your 407 ETR debts
In order to discharge your 407 debts, you’ll need to contact the 407 ETR.
This will be done via your trustee when you claim bankruptcy.
When making a claim with the help of Bankruptcy Canada, we’ll contact the 407 ETR on your behalf and ensure that your 407 debts are cleared during your bankruptcy claim.
Along with keeping your vehicle and work-related assets, this will ensure that you can continue working with peace of mind and commuting to work with no restrictions.
Simply give us a call today to schedule a free consultation to decide if bankruptcy is right for your financial situation.
While it’s the most effective option for most people to get rid of their debts for good and start fresh, others may find that solutions such as debt consolidation can be just as effective, especially if your debts are still fairly low and could be managed in other ways.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?