Here is the latest update regarding 407 ETR debt and whether or not it is dischargeable debt in a bankruptcy or proposal.
Basically, the Courts have provided 407 with leave to overturn the Court of Appeal decision that 407 debt should be included as a debt in a bankruptcy or a proposal and discharged along with other debts. Thus 407’s appeal was granted and looks like they will be trying to have the decision overturned so they can collect the debt, even after someone has declared bankruptcy.
The conclusion for now is it looks like the 407 will not be letting this matter go and wants to be able to have their debt or fines survive bankruptcy or a proposal. They accomplish this when you go to renew your licence or sticker for your plates by making it mandatory for you to pay any Ministry fines and any 407 tolls outstanding. In the meantime, because of this treatment for plate renewals, many are still having to pay any fines or tolls with 407 even if they included it as a debt in their bankruptcy or proposal.
The saga continues with no clear answer on this debt however Hoyes, Michalos & Associates will continue to monitor and update.