407 ETR Bills CAN Be Included in a Bankruptcy or Consumer Proposal

December 20, 2018

Did you know that 407 ETR bills can be included when you file for Bankruptcy or for a Consumer Proposal? It’s true!

One of the questions we’re asked most frequently has to do with what debt can be included in a Consumer Proposal or Bankruptcy. Here is what you need to know:

Consumer Proposal

A Consumer Proposal can include any form of unsecured debt — debt that is not secured or backed by an asset you own. This includes:

  • Credit cards
  • Lines of credit
  • Personal loans
  • Payday loans
  • Income taxes
  • Unpaid bills (such as your 407 ETR bill)

What can’t be included are:

  • Secured debts (debts tied to an asset you own), such as a mortgage or a car loan.
  • A student loan that is less than seven years old. You can only include student loans if you have been out of school for at least seven years.
  • Family obligations, such as alimony or child support.


Debts that can be discharged during a Bankruptcy are similar to those in a Consumer Proposal, but your assets can also be seized. Secured debts are not discharged during a Bankruptcy, but as those assets are based on collateral, your assets can be possessed or foreclosed on, which would pay off your outstanding debts.

For example, your mortgage has your house tied to it as collateral, so in a Bankruptcy your house could be foreclosed on and sold to pay off your mortgage debt. The same is true for your vehicle and vehicle loan. This is why if you have a significant amount of equity in your home, you may want to consider filing for a Consumer Proposal instead.

Your secured assets won’t always be seized during a Bankruptcy. If, for example, your house has little or no equity and you are current on your mortgage payments, you may be able to keep your house.

407 ETR

In the specific case of the 407 ETR, again, the answer is yes, unpaid bill amounts can be included in both a Consumer Proposal and in a Bankruptcy. However, the 407 ETR debt must be entirely paid by the Consumer Proposal so that your license plate renewal won’t be denied.

If you are consider filing for a Consumer Proposal or Bankruptcy, Fuller Landau Debt Solutions can help. Our Licensed Insolvency Trustees take a personal approach to debt and will help you make a plan that is right for you. We can answer any questions you have about the process and beyond.

Contact us today for a free consultation. Call (416) 927-7200 or visit www.fullersolutions.ca.