Millions of tickets are dolled out every year, not to mention government penalties and fines. Government tickets and fines are one of the most common forms of debt. Can these be discharged through a bankruptcy filing?
In Chapter 7 bankruptcy, section 523(a)(7) of the Bankruptcy Code specifically states that fines and penalties owed to or for the benefit of governmental units are non-dischargeable. This is a broad category, and will include anything charged by the government as a fine or penalty.
In Chapter 13, section 1328(a)(4) of the Bankruptcy Code makes it possible to discharge some, but not all such fines and penalties. Section 1328(a)(4) excludes from discharge restitution or criminal fines included in a sentence of the debtor’s conviction of a crime. This means that, if you have parking or traffic tickets or other types of government fines that are not the result of a criminal conviction, you may be permitted to discharge them in a Chapter 13 filing.
Of course, the problem with Chapter 13 is that you may be ordered to pay even legally dischargeable debts if the court determines that you have the disposable income to do so. In determining what bankruptcy chapter to chose, or whether bankruptcy is right for you, it is important to talk to a qualified bankruptcy attorney, who can assess your individual situation.
Stephen Trezza
Trezza and Associates
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Tags: Tickets, Tickets Bankruptcy
Posted July 17, 2011 by Imogen Lay under Credit Report