Yes, unpaid toll highway debts from the former Port Mann bridge, Golden Ears, or current private road tolls in British Columbia are standard unsecured debts. They can be completely cleared by filing a consumer proposal under the Bankruptcy and Insolvency Act, which will allow ICBC to lift any related “refuse-to-issue” holds on your driver’s licence once the proposal is accepted by your creditors.
Dealing with historical toll debts in British Columbia can be a frustrating experience. Even though the provincial government removed the tolls on the Port Mann and Golden Ears bridges years ago, many residents still have old, unpaid toll debts lingering in collections. These debts, along with any private highway tolls, can quickly balloon due to aggressive interest rates and collection agency fees. 📞
Whether you reside in Vancouver, Surrey, or Kelowna, a common misconception is that government-related debts cannot be forgiven. In reality, toll highway debts are simply unsecured debts, much like a standard credit card. Under the federal Bankruptcy and Insolvency Act (BIA), these debts are fully dischargeable. If a collection agency is harassing you or threatening to impact your ICBC insurance renewals over an old toll debt, a consumer proposal offers a powerful, legally binding solution to clear the balance for good.
Step-by-Step Process in British Columbia
Filing a consumer proposal to clear your toll debts, along with your other unsecured debts, is a highly structured process overseen by a professional. Here is how you can resolve the issue in BC.
Step 1: Gather Your Debt Notices and ICBC Records
Before taking action, you need a clear picture of what you owe. Gather all letters from collection agencies (such as CBV Collection Services, which historically handled BC toll debts). You should also check with the Insurance Corporation of British Columbia (ICBC) to see if a “refuse-to-issue” (RTI) hold has been placed on your driver’s licence or vehicle insurance due to these unpaid tolls. 📄
Step 2: Meet with a Local Licensed Insolvency Trustee (LIT)
A consumer proposal can only be filed by a Licensed Insolvency Trustee. During a free consultation, the LIT will review your total debt load-including tolls, credit cards, and CRA taxes-and determine a fair monthly payment based on your income and assets. You might find that you can settle all your debts for a fraction of what you originally owed.
Step 3: File the Proposal and Trigger the Stay of Proceedings
The moment your LIT officially files your consumer proposal with the federal government, an automatic legal protection called a “Stay of Proceedings” goes into effect. By law, collection agencies must immediately stop calling you. Furthermore, because toll debts are not court-imposed fines, ICBC will lift any related “refuse-to-issue” (RTI) holds once your creditors formally accept the proposal (which typically takes up to 45 days). During the period between filing and creditor approval, the RTI hold remains active, so planning ahead is crucial if your renewal date is approaching.
How Much Does it Cost in British Columbia?
A consumer proposal consolidates your debts into one affordable payment, eliminating the need to pay individual collection agencies.
- Monthly Proposal Payments: Depending on your total debt and income, an average consumer proposal in BC might cost between $150 and $350 CAD per month, replacing all your previous debt obligations.
- Total Settlement Amount: Most proposals settle unsecured debts (including tolls) for 20% to 50% of the original balance. If you owed $5,000 in tolls and credit cards, you might only pay back $1,500 total.
- Professional Fees: The LIT’s administrative fees are deducted directly from your monthly proposal payments. You do not pay additional upfront fees to your trustee.
How Long Does the Process Take?
Once you file, the Stay of Proceedings is immediate-often taking effect within 24 to 48 hours, stopping the collection calls instantly. The creditors then have 45 days to accept the proposal. The actual payment term of the consumer proposal is flexible, usually lasting between 1 to 5 years (maximum 60 months), depending on what you can comfortably afford each month.
| Type of Debt in BC | Can a Proposal Clear It? | Impact on ICBC Holds |
|---|---|---|
| Highway Tolls (e.g., old Port Mann) | Yes. It is a standard unsecured debt. | ICBC lifts the “refuse-to-issue” hold once the proposal is accepted. |
| Municipal Parking Tickets | No. Court-imposed fines cannot be discharged. | ICBC holds for parking tickets remain active. |
| ICBC Premium Arrears | Yes. Unpaid insurance premiums are unsecured debts. | Hold is lifted, but you must pay upfront for future coverage. |
Frequently Asked Questions (FAQ)
Can ICBC refuse to insure me if I file a consumer proposal?
No. While ICBC is a provincial crown corporation, they are still bound by federal bankruptcy laws. If your only debts to them are tolls or premium arrears, they will allow you to renew your insurance once your consumer proposal is formally accepted by your creditors, provided you pay for the new policy. Keep in mind that during the 45-day voting period, the refuse-to-issue hold remains in place.
What if a collection agency keeps calling about the toll debt?
Once your proposal is filed, it is illegal for a collection agency to contact you directly to demand payment. You should inform them that you have filed a consumer proposal and give them your Licensed Insolvency Trustee’s contact information. Your LIT will handle all communications.
Are speeding tickets or DUI fines cleared by a proposal?
Absolutely not. Under Section 178 of the Bankruptcy and Insolvency Act, fines, penalties, and restitution orders imposed by a court (such as traffic tickets or criminal fines) are not wiped out by a consumer proposal or bankruptcy. You must pay these in full.
Do I have to include my toll debts in the proposal?
Yes. Canadian law requires you to declare all of your unsecured debts when filing a consumer proposal. You cannot pick and choose which creditors to include. Your toll debts must be bundled together with your credit cards, personal loans, and tax debts.
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