407 ETR Debt Now Dischargable in Bankruptcy or Proposals

A recent ruling in the Ontario Court of Appeal means that 407 ETR highway debts can now be included in a bankruptcy or a consumer proposal under the Bankruptcy and Insolvency Act (BIA). In the past, people filing either a bankruptcy or a proposal were discharged from all their unsecured debts, but the MTO would withhold a new vehicle permit (“sticker”) when it came time for the person to renew unless payment of 407 debt was made in full. Effectively, this meant that that particular debt had not really been discharged.





Can I Pay Off My Student Loan in a Consolidation or via a Settlement?

Possibly!  Student loan debt is an eligible debt in either a bankruptcy or a consumer proposal provided it has been 7 years since you’ve been a student.  That aspect of the Bankruptcy and Insolvency Act (BIA) was changed by the government in July 2008 (prior to that the law stated it had to be 10 years since a student).