407 Debts Are Now Dischargeable by Bankruptcy and Consumer Proposals

Great News: The 407 can no longer prevent you from renewing your plates if your 407 debt was discharged by a consumer proposal or bankruptcy.
Both bankruptcy and a consumer proposal are intended to provide a fresh start.  If you can’t renew your license plate after erasing your debt with a consumer proposal or bankruptcy, then your past debts would continue to affect your future; not much of a fresh start in our opinion.
While we at Welker and Company have always seen it this way, it took the highest court in the land months and months to finally rule that the Bankruptcy and Insolvency Act trumps the 407 Act and Traffic Safety Act due to federal paramountcy (a fancy way of saying that federal legislation like the Bankruptcy and Insolvency Act takes precedence over provincial legislation like the Traffic Safety Act and 407 Act.
You can find a copy of the judgment here.
This is great news for everyone with 407 debt who has filed a consumer proposal or assignment in bankruptcy.  We applaud the Supreme Court of Canada’s decision, and thank the Office of the Superintendent of Bankruptcy for their efforts in obtaining this judgment for the people of Ontario.