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.
posted by Ian Martin @ 11:45 AM
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