The 407 express toll road in Ontario

407 ETR Debt: What You Need To Know

There has been some controversy regarding Highway 407 ETR and the debts that people incur from unpaid toll fees.

 Many people don’t know that the company controlling the highway uses licence plate denial as a way to ensure payment. 

Furthermore, until a few years ago, people who listed 407 tolls as part of their debt when filing for bankruptcy or a consumer proposal were still obliged to pay their tolls before being allowed to renew their licence plate or get a new one.

What Is Licence Plate Denial?

The Highway 407 Act allows the company that controls the highway to use licence plate denial as a way to secure payment from people who have unpaid toll debts. This means that if somebody hasn’t paid their toll charges after receiving notice, the company will notify the Ministry of Transportation, who will refuse to renew the person’s licence plate or issue them a new one until payment has been made.

Until 2015, people who filed bankruptcy or consumer proposals found that their debt from the 407 ETR wasn’t discharged at the same time as other debts and were unable to renew their licence plate or obtain new ones. However, the Supreme Court of Canada ruled that despite what was written in the Highway 407 Act, toll charges are not one of the few debts that remain after bankruptcy.

Do You Have Debt From Using The 407 ETR?

The Supreme Court ruling doesn’t mean that licence plate denial is illegal. In fact, if you have outstanding debt from 407 tolls and ignore the notice of failure to pay, you may find yourself unable to renew your licence plate.

If you file for bankruptcy or file a consumer proposal, however, these debts will be discharged provided you haven’t incurred new toll debts after filing and that you have no other debts with the Ministry of Transportation for which licence plate denial is in effect. 

We Provide Personal Debt Help In Ottawa & Across Eastern Ontario

If your outstanding debt from the 407 ETR and other sources has become a burden, there’s help. Contact D. & A. MacLeod Company Ltd today to find out if personal bankruptcy or a consumer proposal is the right course of action for you. We help people from Ottawa and the rest of Ontario manage their debt and make a fresh start. Call one of our Licensed Insolvency Trustees today for a free consultation.