Illinois Drivers can accumulate a number of parking tickets or traffic fines that can add up to big debt if they go unpaid. Many wonder if this type of debt can be tackled along with other debt through bankruptcy.
Discharging Traffic or Parking Tickets in a Chapter 7 Bankruptcy
Unfortunately, fines owed to a government unit/city such as traffic fines or penalties and parking tickets are typically not dischargeable in a Chapter 7 bankruptcy, although it may buy you some time.
If you have little or no income, you may be able to file a chapter 7 bankruptcy which can not only help you eliminate other debt such as unsecured credit card debt or medical bills, but temporarily hold the city at bay while your bankruptcy case is settled.
>Assuming that some of your debt will be discharged in the Chapter 7 bankruptcy and you secure a regular source of income during the roughly three month period it takes to settle your case, you may be in a better position to work out a manageable payment plan with the city to pay off the traffic and parking fines.
Tackling Parking or Traffic Tickets Under Chapter 13 Bankruptcy
Under Chapter 13 someone with parking tickets or fines and other debt that have spiraled out of control may have more options. If you have a regular source of income but have fallen behind, a Chapter 13 bankruptcy may help by allowing a debtor to pay back parking tickets and moving violations as well as other debt over a 3 to 5 year period, providing some needed breathing room. During the bankruptcy repayment plan, driver’s license suspensions, vehicle booting and vehicle seizure are held at bay while drivers bring their accounts current. Creditor harassment for other debt included in the Chapter 13 bankruptcy stops.
Contact an Experienced Peoria Bankruptcy Lawyer for Help
The loss of driving privileges or a vehicle can only make a difficult financial situation worse. If you have accumulated expensive traffic tickets or parking tickets and are already struggling with a difficult financial situation, it may be worthwhile to explore bankruptcy protection options. Contact the Peoria Bankruptcy Law Offices of Charles E. Covey for answers to your questions at 309-674-8125.