Archive for September, 2009

In meeting with people to discuss their Kitchener bankruptcy concerns, there is a question that has been popping up with increased frequency of late. The question is this: Do my 407 ETR debts go away as part of a personal bankruptcy or consumer proposal?

To answer this question, I am first going to make some comments about bankruptcies and proposals in general. Give me a moment to put on my professor’s spectacles. One of the principles behind personal bankruptcy and consumer proposals is to be released from your legal obligation to pay your unsecured debts. Call it a fresh start. Unsecured debts are things like credit cards, personal loans, income taxes, etc. It does not include debts like a mortgage or car loan where there is a physical asset attached. So, the general rule is that you get released from your unsecured debts, UNLESS there is a specific exception to the general rule. Some of the specific exceptions are alimony, child support and student loans less than seven years old. No where in bankruptcy law does it say that 407 ETR bills do not go away as part of a bankruptcy or proposal.

Here is where it gets a little tricky. The Highway 407 Act (yes, it has its own set of laws) says that you can have the renewal of your licence plates denied if you don’t pay your bill. This covers renewal of existing or issuance of new plates. Further, the powers that be at the 407 ETR contend that they have the right to deny your plate renewal even if you have completed a bankruptcy or proposal. Here is their position on the matter.

I have not seen a court case that confirms this position specifically related to the 407 ETR. However, there have been several court cases that do confirm the plate denial aspects of other laws following bankruptcy. Therefore, my answer is that you will probably have to pay your 407 ETR debts if want to renew your licence plates.

Is that reason enough not to go ahead with filing a personal bankruptcy or consumer proposal? It’s hard to say because no two situations are exactly alike. I suggest that you contact me by phone at 310-PLAN or 1-866-747-0660 or e-mail to review your options in more detail.

As I was painting my kitchen this past weekend, my mind could not help but wander a bit. At times I could hear kids playing gleefully outside, making me yearn just a little for the carefree days of youth.

Coming back to the task at hand (i.e. painting), I found myself wondering about the seemingly endless variations on off-white; winter white, icicle, elephant tusk, and on and on. My favourite is “calm.” Not sure when that became a colour.

At some point, I started reflecting on the past week at work. When people sit down with me to ask questions about personal bankruptcy in Kitchener, every situation is at least a little bit different. Some people with high-paying jobs, some people relatively lower. Many are with no job at all right now. Regardless, there has been an unfortunate and unforeseen series of events leading them to sitting down with me.

This is why one of the upcoming changes to personal bankruptcies and consumer proposals is so perplexing to me. There is an assortment of changes to insolvency laws that will be effective September 18. Here’s a useful summary. However, you will not find in this commentary the change to which I am referring.

Here it is: if you file a personal bankruptcy or consumer proposal after September 18, you will be required to disclose your highest level of education. What purpose does that serve? Are you any more or less deserving of the legal protection provided by a personal bankruptcy or consumer proposal because of your education? I have not heard a good answer yet. When I learn the rational explanation, I will let you know.

Regardless of the intention, the expected result is, to put it mildly, unfortunate. It is already difficult enough to consult with a stranger about your financial problems. I suspect that many people will be flat out offended when I ask about their education.

If you are in financial difficulty and want to learn more about your options, I want to assure you that you will be treated with dignity and respect when you contact us. Sometimes, we ask uncomfortable questions. Please understand that it’s part of our professional duty. To get started, you can contact me by phone at 310-PLAN or (519)747-0660, or by e-mail.