The private company that maintains the 407 toll highway has agreed to pay almost $8 million to settle a class action lawsuit over bankrupt drivers who have had their license plates denied.

Bankruptcy settlements allow for a debtor’s assets to be distributed equitably to creditors, with debts erased so he or she can have a clean start.

The class action suit challenged the 407 ETR’s practice of denying license plates post-bankruptcy.

The settlement has been agreed upon by the 407 ETR and complainants, subject to court approval.

A hearing is scheduled at the Ontario Superior Court at Osgoode Hall for Nov. 15.

“The defendants do not admit liability,” a notice on the 407 ETR website says. “The settlement reflects a compromise of disputed claims.”

They have agreed to a settlement fund of $7,965,800 for eligible class members.

The suit was handled by Scarfone Hawkins law firm from Hamilton.

The decision follows a decision by the Supreme Court of Canada in November 2015 that states the 407 ETR can’t deny license renewal to people who have been discharged from bankruptcy for the purpose of enforcing payment of outstanding tolls or charges.

The class action lawsuit started in the Ontario Superior Court of Justice in Toronto Apr. 27, 2012.

The settlement allows for each eligible class member to receive a payment of $200, then apply for additional compensation.

Claimants must apply for compensation by Mar. 27, 2017.