It has been over ten years since an Ontario Court (incorrectly) decided that the Ontario Registrar of Motor Vehicles should be denying the renewal or issuance of license plates at the request of 407ETR for those who don’t pay their 407 ETR debt but have filed for bankruptcy or filed a consumer proposal.
The decision brings Long awaited relief for Ontario Motorists
In a long awaited appeal decision, the Supreme Court of Canada has now ruled that the 407ETR does not have the right to deny motor vehicle license plate renewals in bankruptcy or proposal circumstances. This decision is a huge win for individuals already struggling to get a fresh start free of the burden of their past debt.
This means Ontario motorists will be treated fairly and be offered relief from their past 407ETR debt
Bankruptcy
Upon an assignment in bankruptcy, a stay applies which prevents the 407ETR from collecting on debts that existed at the date of bankruptcy. They will lift the plate denial enabling you to obtain your license renewals.
Consumer Proposals
The 407ETR has stated that they will remove amounts from plate denial where the amounts are covered by a consumer proposal that has been accepted by creditors upon receipt of a letter to that effect. Krieger & Company prepares these letters in all consumer proposals so you can get the plate denial lifted right away and get your fresh start.
If plate denial is threatening your ability to drive or to work, call us for a free consultation with a licensed insolvency trustee. Only a licensed insolvency trustee can file a consumer proposal or assignment in bankruptcy and lift the plate denial that is threatening your ability to drive.
For the long-winded legal analysis, you can read the full case here.
For information from the 407ETR’s web site:
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