Bankruptcy and Traffic or Parking Tickets. Are They Included?


Category: Personal Bankruptcy Leave a comment

Tickets and fines are not debts that are dealt with by the Bankruptcy and Insolvency Act. This includes parking tickets, speeding tickets or any court imposed fine as a result of an offence.  These are debts specifically excluded under section 178 (1) of the Bankruptcy and Insolvency Act. The only way I know of to reduce a ticket or fine is to return to the Court that assessed the ticket or fine and ask for a reduction.

parking and traffic tickets in bankruptcy

This conversation usually leads people to ask about highway tolls and charges – think 407 in Ontario.  Not surprisingly, the 407 has always taken the position that their debts are not eliminated by bankruptcy. Specifically, the 407 has taken the position that they have the right to refuse to allow your licence to be renewed unless the charges are paid, whether you file bankruptcy or not. As of early 2014, this matter has been through two levels of Court already and the 407 has lost. Given the implications financially, they have decided to appeal the decision to the Supreme Court on Appeal.  Until they have exhausted their appeals, they will, unfortunately, continue to interfere with licence renewals.

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