Beware the 407 when you are insolvent

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Published: April 9th, 2010 • Last Updated: January 7th, 2021
Author: Ross Taylor on AskRoss.ca

407 Tolls Are Not Included In Consumer Proposals Or Bankruptcy

I attended a credit counselling meeting today with a lady in the late stages of a successful consumer proposal. She related a story of how she also owed $1,800 in unpaid 407 tolls at the time she entered into her proposal, and wrongly assumed this bill would be incorporated into her proposal payment.

Well over a year later, she received a new bill from the 407 for $ 7,500! This was the amount now owing, according to 407. A combination of tolls, administration fees, and interest charges.

Apparently, the 407 considers itself immune from the insolvency process in Canada – whether you are doing a proposal or even a bankruptcy. The Bankruptcy and Insolvency Act specifies you cannot get away from items like support payments, student loans of a certain vintage, and court fines, but there is no mention of 407 bills being exempt.

However, 407 has huge power in our day to day lives. When our client had gone to buy a plate for a new vehicle, that was when she was told she owed $7,500 – and until that was paid, she was denied a license plate.

UPDATE: Since Nov 2015

Great news – anyone who’s been declared bankrupt can now have their 407 debt included in their discharge, and the company running the toll road can no longer deny them a licence plate renewal.

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​Ross Taylor
One of Toronto/GTA's Most Trusted and Knowledgable Mortgage Agents

Ross Taylor is recognized by his peers as one of Canada's pre-eminent difficult mortgage specialists. His ASKROSS blog and column ​ in Canadian Mortgage Trends are focused on the intersection between mortgage financing and personal credit.

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