Only a small number of debts are not discharged by a Consumer Proposal or Bankruptcy. They’re outlined in s178 of the Bankruptcy and Insolvency Act which states:
“any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail” is not released by an order of discharge.
In layman’s terms, this means that parking and traffic tickets, which are fines imposed by a court in respect of an offence, are not released by bankruptcy or a consumer proposal.
Failure to pay outstanding tickets often leads to the Ministry of Transportation requiring payment when you renew your plates. In addition, municipalities often retain collection companies who will contact you regularly and request payment.
If you do not believe that you owe your outstanding tickets, most levels of government have dispute resolution processes which you can undertake, or retain a representative to undertake on your behalf.
You may also wish to contact the issuer of the ticket and attempt to work out payment arrangements; unfortunately, once certain time limits expire, this often requires an appearance in court and associated costs.
If tickets are your only debt, then a consumer proposal or bankruptcy are probably not right for you; however if you have other debt that you stop paying after making an assignment or bankruptcy or consumer proposal, then you may be able to direct more money to your outstanding tickets and get them paid off sooner.
To have your financial situation reviewed by a licensed Trustee in Bankruptcy give us a call, or fill out our contact form below and let us impress you with our prompt response.