Tag: Bankruptcy
If you don’t know what surplus income in bankruptcy is don’t feel that you aren’t as smart as the next person because most people don’t know what it means or how it is even possible. We hope this short video will explain things easier for you.
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We have previously written about surplus income in bankruptcy in our blogs:
- CAN YOU REALLY HAVE SURPLUS INCOME IF YOU’RE BANKRUPT?
- BANKRUPTCY FAQ CANADA
- WHAT CAN I DEDUCT FOR SURPLUS INCOME IN BANKRUPTCY?
On the list of items that generally seems to be difficult for many individuals to understand is how there can be surplus income in bankruptcy. The reason for the confusion is because it has nothing to do with the normal usage of the word “surplus”, being “more than what is needed or used; excess”.
What is surplus income in bankruptcy?
Within a personal bankruptcy, the context is a measure of what a bankrupt has to pay to the Trustee month-to-month. It is one of the aims of the Canadian bankruptcy system to balance the discharge of one’s personal debt with the expectation of the creditors that they should be paid.
To allow Canadians to keep a basic standard of living during the personal bankruptcy procedure, the government features collection thresholds on income (after income tax as well as certain deductions) meant to enable the bankrupt to keep a basic standard of living while contributing an amount to the Trustee for the benefit of his or her creditors.
Exactly how is the surplus income in bankruptcy payment determined?
The surplus income payment is determined according to a prescribed surplus income calculation mandated by the federal government, without any distinction for the area somebody lives in. To learn exactly what your surplus income in bankruptcy obligation would be, if any, you need to speak to a Trustee.
Surplus income in bankruptcy thresholds are structured based on national “poverty line” stats and the thresholds are set regardless of what part of the country or city that you live in. Surplus income in bankruptcy has nothing to do with what you have left over in funds every month. It is a federal solution which takes your monthly after-tax wages or salary, allows for a specific number of non-discretionary expenses, and takes into account your family size. Your Trustee then inputs this information into the government mandated formula, to calculate your surplus income in bankruptcy obligation.
If you have too much debt, contact us
If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and carry out the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.
If you’re experiencing serious debt issues with the CRA, or for any reason, contact a professional trustee for a free, no obligation consultation. The Ira Smith Team does not try to write new insolvency law or tax law. Rather, we will evaluate your situation within the existing statutes, and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal. Starting Over, Starting Now you can be debt free with the help of a professional, licensed trustee in bankruptcy. Contact us today.
Which industries may require corporate bankruptcy services in 2016?
Canada and Canadians are facing serious economic challenges, and certain industries have been much harder hit than others. Oil and gas, automotive and construction have taken the biggest hit and there are no clear signs of recovery any time soon. They may very well require corporate bankruptcy services (sometimes misspelled corporate bancruptcy services) in 2016. And, according to Statistics Canada, accommodation and food services, transportation and warehousing, and information and cultural industries experienced the biggest increase in insolvencies.
Our list of the top candidates for corporate bankruptcy services in 2016
- The oil and gas industry: According to Bloomberg business, the oil price crash is taking a heavy toll on Canada and the worst is yet to come. As a result, Calgary is taking the brunt of it with crime on the rise, house prices falling rapidly and food banks being overwhelmed. “We all know someone who has lost a job,” Naheed Nenshi, the city’s mayor, said in a speech this month, lamenting the “funeral”-like atmosphere in the business community. The bloodletting isn’t over yet. Already 40,000 oil and natural gas positions have been lost in the last 18 months and many more job cuts are predicted in 2016.
- The automotive industry: The auto industry is on very shaky ground. Mexico and Tennessee have replaced Michigan and Ontario as the North American auto industry’s manufacturing hubs. Canada’s auto trade has gone from a surplus of $15-billion in 1999 to a deficit of $18-billion in 2013; half of which came from trade with Mexico. Production commitments made by General Motors Co. (GM), including those made within the corporate bankruptcy services that created “Old GM” and “New GM”, and Chrysler Group LLC as part of their $13.7-billion bailouts, are set to expire at the end of 2016, leaving them free to close plants and lay off workers if they see fit. According to Charlotte Yates, dean of social sciences at McMaster University and head of the new Canadian Automotive Policy Partnership, if Canada is determined to keep trying to compete in today’s globalized auto industry, it can’t do it without subsidies.
- The construction industry: The construction industry is a corporate bankruptcy services leader. Industry Canada’s July bankruptcy statistics have ranked the construction industry as one of the leaders in bankruptcies and experts attributed the statistics to a risky business with poor management and cash-flow monitoring.
Canadians and their debt
Canadian consumers are the most indebted in the world according to Tom Bradley of Steadyhand funds, “Lines of credit, home-equity loans, car leases, credit cards, high-ratio mortgages—they’re well-versed in them all. The level of consumer debt will make it difficult to attain the growth and employment levels of previous cycles; past purchases were borrowed from the future. Extensive use of leverage will also make Canadian families and the overall economy vulnerable in the next economic slowdown”.
If you’re like many Canadians and Canadian corporations experiencing serious financial problems, now is the time to deal with them. The Ira Smith Team will tackle your financial issues head on and with immediate action and a solid plan you can be on your way to a debt free life Starting Over, Starting Now. Contact us today.
The rise of average student loan debt
Average student loan debt is getting out of control. Post-secondary education is effectively a need for today’s labour market. According to the Canadian Federation of Students in its paper titled: “The Impact of Student Debt”, unfortunately, since the demand for education has inflated, public funding did not keep up. Public funding shortfalls have resulted in the increased cost of post-secondary education being borne by students.
The growth in average tuition fees
From 1990 to 2014, the national average tuition fees have seen an inflation adjusted increase of over one hundred and fifty per cent (150%). In Ontario, tuition fees have grown over one hundred and eighty percent (180%). For most students—often having spent very little time active within the workforce, other than for part-time work—funding their education has become more and more troublesome.
Students now taking on higher levels of average student loan debt
Many students are now taking on increased levels of debt for their education. Students requiring a Canada Student Loan currently graduate with an average student loan debt of over $28,000. Keep in mind that this is an average, with the costs of graduate education resulting in higher debt levels. Relying on debt to finance education suggests that there is a delay in the full impact of high tuition fees till after graduation—when interest begins to be charged.
Societal issues caused by rising average student loan debt statistics
This impact is now exacerbated by the effects of the most recent recession and the rising trend of precarious, and even unpaid, employment. The broader effects of high levels of student debt on both the person and the general economy are now resulting in various issues:
- Young Canadians (15-24) accounted for over half of job losses over the last 5 years;
- Un and under-employment can cost the Canadian economy over $22 billion by 2031;
- In 2014, youth un and under-employment was twenty-seven per cent (27%);
- Thirty per cent (30%) of medical students expect to graduate with over $100,000 in student debt;
- Under-employment and work outside one’s field of study results in talent degradation, falling behind in ability, and lost networking opportunities;
- Canada has seen a fifteen per cent (15%) growth in Canadians under the age of 30 who still live in their parent’s home since 1981;
- Those with student debt have a fewer assets, savings or investments compared to debt-free peers.
Average student loan debt causes affect the Canadian economy
Starting out with huge debt and facing a weak labour market, this prevents graduates to fully take part within the Canadian economy. Student debt impacts career selections, even among professional school graduates in medicine and law. An estimate of unpaid internships is in the range of 300,000 graduates working with no pay.
Do you have too much debt? Then contact us now
If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and carry out the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.
Student loan debt has its own set of unique rules and complexities within the Canadian insolvency scheme. If you’re experiencing serious debt issues, contact a professional trustee for a free, no obligation consultation. The Ira Smith Team does not try to write new insolvency law or tax law. Rather, we will evaluate your situation within the existing statutes, and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. Starting Over, Starting Now you can be debt free with the help of a professional, licensed trustee in bankruptcy. Contact us today.
CRA phone scam is so popular
Our blog about the CRA phone scam titled: CANADA REVENUE AGENCY SCAMS: IF YOU READ ONE ARTICLE, READ THIS ONE is one of our most viewed. Since it is so popular, we thought we would put together a short video on the topic as well.
There are many fraud types, including new ones invented daily. CRA’s website warns Canadians about the CRA phone scam, which is also sometimes called the India scam. The Toronto Star also published a story on this topic: Beware phony CRA tax owing calls. The problem is rampant.
Stay wary and vigilant to not fall for the CRA phone scam
Taxpayers must be vigilant when they receive, either by telephone (including voicemail), mail, text message or email, a fraudulent communication that claims to be from the Canada Revenue Agency (CRA) requesting personal information such as a social insurance number, credit card number, bank account number, or passport number.
These scams, increasingly a scam phone call, may insist that they need this personal information so that the taxpayer can receive a refund or a benefit payment. Cases of fraudulent communication could also involve threatening or coercive language, including threats of prosecution for tax evasion, to scare people into paying fictitious debt to the CRA. Other communications urge taxpayers to visit a fake CRA website where the taxpayer is then asked to verify their identity by entering personal information. These are scams and taxpayers should never respond to these fraudulent communications or click on any of the links provided.
Educate yourself so that you do not fall prey to the CRA phone scam
To identify communications not from the CRA, be aware of CRA’s guidelines.
If you receive a call saying you owe money to the CRA, you can call the real CRA taxation office or check your CRA online “My Account” to be sure. If you have signed up for online mail (available through My Account, My Business Account, and Represent a Client), the CRA will do the following:
- send a registration confirmation email to the address you provided for online mail service for an individual or a business; and
- send an email to the address you provided to tell you when new online mail is available to view in the CRA’s secure online services portal.The CRA will not do the following send email with a link and ask you to divulge personal or financial information.
If you have too much debt, contact us
If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and carry out the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.
If you’re experiencing serious debt issues with the CRA, or for any reason, contact a professional trustee for a free, no obligation consultation. The Ira Smith Team does not try to write new insolvency law or tax law. Rather, we will evaluate your situation within the existing statutes, and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. Starting Over, Starting Now you can be debt free with the help of a professional, licensed trustee in bankruptcy. Contact us today.
DioGuardi Tax Law – The Introduction
Several months ago we first introduced you to Philippe DioGuardi, a Canadian tax lawyer – The Tax Lawyer; Even a High Profile Tax Fighting Tax Lawyer Has to Pay His Income Tax. He’s the high-profile tax lawyer of DioGuardi tax lawyers who portrays himself as a one-man bulldog lawyer crusader against the unfair tactics of the Canada Revenue Agency (CRA). Ironically, at that time, a Toronto Star investigation revealed that Philippe DioGuardi had his own tax problems with the CRA and he paid up; the DioGuardi tax law couldn’t create the DioGuardi tax amnesty magic or “change the game”, to quote his own radio ads.
DioGuardi Tax Law – The Change
Recently I noticed that Philippe DioGuardi, a prominently featured DioGuardi tax lawyer, was no longer featured in the radio ads. Instead, they are being voiced by his father Paul DioGuardi. The ads are now very low-key, with none of the old bluster and bravado. And, I wondered why DioGuardi tax law no longer featured Philippe DioGuardi, the tax lawyer in Toronto.
That is until I read the latest Toronto Star article about him stating, “Self-styled tax fighter Philippe DioGuardi has been given a six-week suspension, a $5,000 fine and an order to pay $75,000 in legal costs after being found guilty of professional misconduct by the Law Society of Upper Canada” (LSUC). So LSUC found law society misconduct charges were proven and assessed a tribunal penalty and didn’t buy into the DioGuardi tax law concept of income tax law, as written by Philippe, and so he has a brief rest from the practice of law – a twist on DioGuardi tax amnesty!
DioGuardi Tax Law Professional Misconduct
The law society lawyer was successful in proving, according to the Order Summary of the Law Society Tribunal Philippe Joseph Mario DioGuardi (1990), of the City of Mississauga was found to have engaged in professional misconduct for:
- failing to act with integrity by having eight clients execute a Retainer Agreement which contains terms that benefit DTL to the potential detriment of the tax debtors clients;
- between April 2007 and October 2012, failing to deposit client money retainer funds received from six clients into a trust account or transferred the client retainer money from the trust to general within a few days of receipt of the funds prior to the performance of any or very little legal services for which he was retained;
- transferring the retainer client funds paid by a client into DTL’s general account within a few days of receipt of the funds prior to the performance of any legal services for which he was retained;
- immediately transferring the retainer funds paid by a client into a third party trust account for the benefit of DTL alone rather than for the client’s benefit and the client no longer had ownership of the monies;
- failing to perform legal services to the standard of a competent lawyer in respect to six tax troubles matters.
DioGuardi tax law, as written by Philippe, is an interesting experiment. It may not be right, but it has certainly garnered a lot of attention.
If you have too much debt, contact us
Do you or your company have unpayable tax debts? Are you looking for unpayable tax debt solutions? If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and implement the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life. This plan includes resolving unpayable tax debt solutions. We have vast experience in helping people and companies with a variety of financial challenges.
If you’re experiencing serious debt issues with the CRA, or for any reason, contact a professional trustee for a free, no-obligation consultation. The Ira Smith Team does not try to write new insolvency law or tax law. Rather, we will evaluate your situation within the existing statutes, and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. Starting Over, Starting Now you can be debt-free with the help of a professional, licensed trustee in bankruptcy.
Contact us today.
Holiday spending calculator
If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and implement the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.
HHoliday spending for the holiday shopping season has started. We have been inundated with commercials, advertisements and emails about Black Friday and Cyber Monday sales. We are all thinking about buying those Chanukah and Christmas gifts. It is natural for all of us to want to buy something special and of high quality for our loved ones. Something special and high quality usually means expensive, but it doesn’t have to be.
We previously wrote about holiday spending and holiday debt:
- SUFFERING THE CONSEQUENCES OF TOO MUCH HOLIDAY SPENDING?
- HOLIDAY DEBT; ARE YOU DROWNING IN IT?
Below are our 5 tools everyone who wants a holiday spending calculator should be using in order for holiday spending not to turn into holiday debt that we cannot afford to repay:
Make a list of what you will need to buy
Impulse buying can get anyone into a lot of trouble. It is difficult not to buy on impulse if we do not have a plan to follow. Before buying anything, make a list of what you need to buy for each person. Usually, a gift that a lot of thought has been put into will be one that the recipient cherishes, and it is not necessarily the most expensive item. Emotions don’t know price tags, and the best heartfelt gift geared perfectly for your loved one will steer you away from impulses.
Set a budget for each expense
Figure out how much in total you can afford to spend, and then allocate the funds amongst the things you need to buy. If you will be travelling to friends and family over the holidays, don’t forget to include the cost of travel, lodging and food as part of your overall budget. Then stick to it. Use your ordinary calculator as a holiday spending calculator.
Start saving early
You should have your total budget figured out early in the year, and then start saving. That way you can afford to purchase either for cash or if on credit card, you will be able to pay it off in the following month. It is hard to put your hands on a lot of money all at once, but it may be no problem for you to save a little bit each month, ending up with the total you need for when you need to make your purchases.
Start shopping early
If you set your list and budget early, then you can be looking for the non-perishable items on your list throughout the whole year. This will let you cash in on special sales, thereby saving you money. This will keep your holiday spending total as low as possible.
Don’t disrupt your normal bill paying and savings program throughout the year
Have you ever heard the expression “pay yourself first”? That is the best gift you can give to yourself. Make sure that your year in year out obligations for bill paying and a normal savings program is intact and on budget, before you add more expenses into your budget. Don’t rationalize a break in your normal bill paying and savings program by saying you will play catch up next month. It rarely happens and then you just fall further behind. Use your holiday spending calculator to help you figure out what you need to save.
Do you already have too much holiday spending debt and other debts?
Now it’s time to deal with the sobering reality of holiday spending and there is no time to waste. If you are experiencing serious debt issues contact Ira Smith Trustee & Receiver Inc. today for advice and a plan to tackle your financial difficulties so that you can be Starting Over, Starting Now.
To access the 407ETR bankruptcy debt checklist, simply click on the picture either at the top or bottom of this blog. It will take you to our secure website for access.
407ETR Bankruptcy Debt: How did the Checklist come about?
407ETR bankruptcy debt was the topic of last week’s blog 407ETR DEBT SETTLEMENT: OUR NEWEST GUILT FREE WAY TO DO IT, we reported on the Supreme Court of Canada (SCC) decision in 407 ETR Concession Co. v. Canada (Superintendent of Bankruptcy), 2015 SCC 52 (CanLII) (the Moore Decision).
To summarize that decision, the SCC dismissed the 407ETR’s appeal because the discharge provisions of the BIA override the plate denial provisions of the Highway 407 Act.
We also reported that the effect of the SCC’s decision is that:
- Pre-bankruptcy amounts owed to 407ETR are deemed to be provable claims under the BIA and can no longer be collected through plate denial under the Highway 407 Act following a customer’s discharge from bankruptcy
- Where a person has been discharged from bankruptcy and has pre-bankruptcy amounts in plate denial, which are provable claims under the BIA, 407ETR will credit these amounts (plus interest and fees incurred on those amounts) on the person’s 407ETR bill, upon receipt of a Notice of Bankruptcy, and an Order of Discharge or a Certificate of Discharge.
In both cases, once the amount owing is credited, then the person is free to obtain plate renewal from the Province.
But the Court won’t tell me how to get my plate after getting rid of my 407ETR bankruptcy debt!
That is all well and good, but the SCC did not and would not tell the “man on the street” how to go about having the combination of the 407ETR and the Province of Ontario reflect all this and issue a new vehicle plate registered in the name of the discharged bankrupt. So we did!
Where do I get these tools?
We prepared a checklist so that discharged bankrupts and their advisors will have a roadmap as to what needs to be done and what tools are required in order for 407ETR and the Province to have the proper information in order to amend their records and allow for the vehicle plate registration.
To access the 407ETR bankruptcy debt checklist, simply click on the picture either at the top or bottom of this blog. It will take you to our secure website for access.
Do you have too much 407 debt and other debts?
Instead of going deeper into debt seek the help from a professional trustee, even if you’re not considering bankruptcy at this stage. A trustee in bankruptcy will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. With immediate action and the right plan the Ira Smith Team can solve your financial problems Starting Over, Starting Now. We’re just a phone call away.
Canada Revenue Agency scams
Canada Revenue Agency, or as it is also known, CRA, has noticed an increase in telephone scams where the caller claims to be from the CRA but is not, and is asking Canadians to beware. There is a CRA newsletter on the issue of Canada Revenue Agency scams and the fake Canada Revenue Agency scammers. These calls are fraudulent and could result in identity and financial theft, or vulnerable people being bullied into making a payment to a bogus Canada Revenue Agency officer. They will try to make you believe that the payment is going to a legitimate CRA account, but it isn’t. There is no such CRA program.
Canda Revenue Agency scams: Anyone is a target
Everyone is at risk of having their identity stolen and it’s easy to be taken in. Most people get a little nervous when they receive a phone call from the CRA; it’s like having a police car driving right behind you even if you’re not doing anything wrong. Recognizing the importance of warning the public about identity theft, we have already published several blogs on the subject:
- Identity Theft: Are You at Risk
- How to Prevent Identity Theft: Recognize if You’re a Victim
- Victim of Identity Theft: Take Quick Action
- How Are Identity Theft and Corporate Bankruptcy Related?
Canada Revenue Agency scams: It will never happen to me, right?
A recent event prompted us to reach out and let you know that anyone can be a target. Ira Smith of Ira Smith Trustee & Receiver Inc. recently received a voicemail at home from someone claiming to be from CRA collections. Being a seasoned, professional trustee and aware of the recent uptick in identity fraud scams, Ira was immediately on guard when the caller asked him to have his SIN number ready for security purposes. Ira Googled the phone number that was left on the voicemail and sure enough, it was a scam.
Click below to listen to the CRA scam voicemail
Canda Revenue Agency scams: Do the RCMP know about this?
According to Corporal Josée Rousseau of the RCMP’s anti-fraud department, police first started seeing the scam two years ago. Callers work from boiler rooms and randomly phone people from purchased calling lists. They tell their victims they’re from Canada Revenue Agency, and they owe money in unpaid taxes. The RCMP also stated the callers are aggressive and often claim they will come to the victim’s house and arrest them if the money is not paid. They say many of the callers speak with a foreign accent and insist the money be paid immediately, either by credit card or via Western Union.
If you get a call from someone claiming to work for the CRA and want to confirm the authenticity of the call contact the CRA at 1-800-959-5525 for business-related calls and 1-800-959-8281 for individual calls. Or you can do as Ira did and Google the number and see what other people are reporting.
Canda Revenue Agency scams: Tips to identify possible scams
Here are some tips from the Canada Revenue Agency to help you identify possible tax scams:
The CRA:
- never requests prepaid credit cards;
- doesn’t ask for information about your passport, health card, or driver’s license;
- does not share your taxpayer information with another person, unless you have provided the appropriate authorization; and
- never leaves personal information on your answering machine or asks you to leave a message containing your personal information on an answering machine.
When in doubt, ask yourself the following:
- Is there a reason that the CRA may be calling? Do I have a tax balance outstanding?
- Is the requester asking for information I would not include on CRA forms with my tax return?
- Is the requester asking for information I know the CRA already has on file for me?
- How did the requester get my email address or telephone number?
- Am I confident I know who is asking for the information?
If you have too much debt you need to take action NOW
Have you been a victim of identity theft or financial theft? If for any reason you’re facing serious financial difficulties, contact Ira Smith Trustee & Receiver Inc. today. We will review your file and take immediate action to get you back on a path towards debt-free living Starting Over, Starting Now.
407 ETR debt settlement
This 407 ETR debt settlement blog was reviewed earlier this week by Mr. Brian Empey, Partner, Goodmans LLP. We wish to express our thanks to Mr. Empey who made a valuable suggestion which we incorporated.
We have updated this blog for 2018 where 407 ETR has implemented some changes. Check out our blog 407 ETR RATES: THE ONLY 407 ETR RATES DEBT SETTLEMENT PLAN GUARANTEED TO ACTUALLY WORK for the update.
In January 2014 in our blog titled 407ETR FAIRNESS-ONTARIO COURT OF APPEAL ENSURES FRESH START we described to you the decision of the Court of Appeal for Ontario in 407 ETR Concession Company Limited v. Superintendent of Bankruptcy (In the Matter of the Bankruptcy of Matthew David Moore) (the Moore Decision).
The highway’s owners appealed that decision to the Supreme Court of Canada (SCC). On Friday, November 13, 2015, the SCC released three decisions all dealing with the same basic issue: does the federal Bankruptcy and Insolvency Act (BIA) take paramountcy over provincial laws purporting to deal with the issue of debt and bankruptcy in Canada. The SCC answer was a resounding YES!
What did the SCC decide about the provincial law about 407 debt settlement?
The SCC dismissed the appeal of the ETR. The SCC considered whether the plate denial provisions of the Highway 407 Act conflicted with the discharge provisions of the BIA. ETR’s position was that provincial law about plate denial should apply following a person’s discharge from bankruptcy. The Attorneys General for several provinces, including the Province of Ontario, advanced positions in support of the provinces’ jurisdiction to legislate in vehicle licensing.
The SCC’s decision upheld the Moore Decision which found that the discharge provisions of the BIA override the plate denial provisions of the Highway 407 Act.
What is the effect on ETR debt settlement?
The effect of the SCC’s decision is that pre-bankruptcy amounts owed to the ETR are deemed to be provable claims under the BIA and can no longer be collected through plate denial under the Highway 407 Act following a customer’s discharge from bankruptcy. Therefore, 407 etr debt settlement is possible.
Where a person has been discharged from bankruptcy and has pre-bankruptcy amounts in plate denial, which are provable claims under the BIA, 407 ETR will credit these amounts (plus interest and fees incurred on those amounts) on the person’s 407 ETR bill, upon receipt of a Notice of Bankruptcy, and an Order of Discharge or a Certificate of Discharge.
In both cases, once the amount owing is credited, then the person is free to get plate renewal from the Province.
What will 407 ETR do next?
407 ETR must and is abiding by the SCC decision. They will set up a protocol whereby those who have already been discharged from bankruptcy and have been denied a plate renewal will be able to prove they have been discharged, get the 407 ETR debt, including penalty and interest, reversed, and get a plate renewal.
Those who are still in the middle of their bankruptcy proceedings and not yet discharged will be able to apply to have a plate renewal, once they are discharged from bankruptcy and prove it to 407 ETR.
Interestingly enough, there was no evidence whatsoever in any of the Court cases, including this one before the SCC, as to the 407 ETR’s right to deny anyone credit. When you get your transponder, the 407 ETR is actually extending credit to you, in the form of use of the toll highway in return for the toll charges they expect you to pay. It is no different from the bank loaning you money, and expecting you to repay it in full, with interest.
Will 407 ETR deny extending credit to discharged bankrupts? Will they only issue a new transponder to discharged bankrupts who give them a large cash deposit so that use of the 407 ETR will only be on a “cash and carry” basis? We don’t know, they have so far been silent on the issue, but it is still early in the game.
Do you need 407 etr debt settlement and a plan for your other debts too?
Instead of going deeper into debt seek help from a professional trustee, even if you’re not considering bankruptcy at this stage. A trustee in bankruptcy will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. With immediate action and the right plan, the Ira Smith Team can solve your financial problems Starting Over, Starting Now. We’re just a phone call away.