Traffic Tickets and Bankruptcy
Have you accumulated traffic tickets you have been unable to pay? You may
be able to eliminate the debt in bankruptcy with a few exceptions to the
rule. Usually in bankruptcy certain debts related to government fines
and penalties may not be eligible for discharge in
Chapter 7 bankruptcy. But,
Chapter 13 bankruptcy may help you get rid of the debt as long as you complete the repayment
plan approved by the court.
What Can Be Included in a Chapter 13 Repayment Plan
Non-criminal debt owed to the government such as fees or penalties related
to traffic offenses (such as failing to stop at a stop sign, speeding
tickets or parking tickets) can be included in a Chapter 13 repayment
plan. You can restructure debt obligations and the bankruptcy filing helps
stop collection attempts from creditors, including the government. Debtors
can use Chapter 13 to help eliminate such fines and penalties by paying
what they can afford.
When the Repayment is Completed
When you complete the repayment, which may last from
3 to 5 years, the debt may become eligible for discharge or elimination. Government
-related debt in this case may be reviewed further to determine how it
meets code standards for elimination. For instance, some debts in this
situation may be considered a form of reimbursement if the government
entity in question is looking to recoup losses related to the offense
or service. The amount owed may vary if there are fees and penalties on
top of the actual cost or money spent by the entity.
Considering Bankruptcy But Not Sure? We Can Help
If you are considering bankruptcy but not quite sure if it is right for
you, feel free to let us know. You can contact us by phone or fill out our
contact form to set up a free consultation. We are always here to help.