Adamson & Associates Inc.

Adamson & Associates Inc.

December 23, 2015 16:15 ET

Ontario Bankruptcy Trustee John Adamson Offers Answers Questions About 407 ETR Debts

Ontario trustee in bankruptcy and accountant John Adamson of Adamson & Associates Inc. reports that, thanks to a recent Supreme Court Ruling, people with outstanding 407 ETR debts that have been discharged in bankruptcy no longer have to worry about license suspension for nonpayment.

ST THOMAS, ONTARIO--(Marketwired - Dec. 23, 2015) - Do I have to pay my 407 ETR bill when I file for bankruptcy? That is a question that John Adamson of Adamson & Associates Inc. ( is often asked. According to Adamson, a licensed trustee in Bankruptcy, Accountant (CMA), and Chartered Insolvency and Restructuring Practitioner (CIRP), the answer in no, thanks to a recent Supreme Court of Canada ruling against the 407 ETR.

"In the past, the 407 ETR and Ministry of Transportation have taken the view that they could, despite 407 ETR debt being a debt dischargeable by bankruptcy, suspend a bankrupt's licence until the debt was repaid. The bankruptcy profession has long held that the 407 ETR should not have this power. Upon a person becoming discharged from bankruptcy, there is no longer any obligation to pay unsecured debts incurred prior to bankruptcy. To force a discharged bankrupt to pay the 407 ETR debt gave special treatment to 407 ETR over other creditors, and did not comply with the spirit of the Bankruptcy and Insolvency Act. Section 178 of the Bankruptcy & Insolvency Act sets out which debts are non-dischargeable and survive bankruptcy, and include child and spousal support, student loans less than seven years old and debts resulting from fraudulent or criminal activity. Safe to say, the 407 ETR is not a debt under that Section that survives bankruptcy," reports Adamson.

"As a trustee in bankruptcy, dealing with 407 ETR debt has been challenging. The law says one thing, but the Provincial Government through its Ministry of Transportation and the 407 ETR have had a different interpretation of the facts. Fortunately, the Superintendent of Bankruptcy took this matter to the Supreme Court of Canada, and the Court has now resolved this problem. The 407 ETR and the Ministry of Transportation may not suspend or refuse a person's plate renewal if they have filed a bankruptcy, and the 407 ETR debt was included in their bankruptcy. It is important to note that the 407 ETR debt must have been incurred before the date a person filed bankruptcy," says Adamson.

"We understand that the 407 ETR will be implementing a new process to deal with the recent Supreme Court of Canada decision. If you have filed bankruptcy before November 13, 2015, and your plates have not been renewed as a result of an unpaid 407 ETR debt, you should send your Notice of Bankruptcy and Order of Discharge or Discharge Certificate to 407 ETR Bankruptcy Department via email at or by Facsimile 905-264-5247 or via mail to P.O. Box 11176 Station A, Brampton, Ontario, L6V 0A8," advises Adamson.

About Adamson & Associates Inc.: Working with a team of qualified professionals, John Adamson, a licensed Trustee in Bankruptcy, Chartered Insolvency and Restructuring Practitioner (CIRP) and Accountant (CMA), assists individuals and businesses in financial distress. Serving Southwestern Ontario, Adamson & Associates Inc. offers personal and commercial bankruptcy services and credit counseling. As experienced and respected Ontario trustees, Adamson and Associates solve personal debt problems and assists businesses in debt. They also provide receivership liquidation services, business restructuring, and proposals. With offices in St. Thomas, Kitchener/Waterloo, London South, London North, Chatham and Windsor, Adamson & Associates Inc. offers free consultations, evening and weekend appointments, and flexible fee payment arrangements. If you have questions regarding a 407 ETR debt or any other bankruptcy or proposal matter, please contact Adamson & Associates Inc. at 519-310-JOHN (5646), or visit their website

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