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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2877
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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If I had a Chapter 7 discharge almost 2 years ago and end up

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If I had a Chapter 7 discharge almost 2 years ago and end up being fined by a government body for something in the next few months (admin fine for not being licensed properly to do business - but it is a sizable fee), do I have any way of discharging that debt? Is it treated like a judgment?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

First of all, it would be too late to include that in the chapter 7, and you won't be available to file chapter 7 again until 8 years from the date of the first case.

Terry L. :

You can file chapter 13, but you won't get a discharge unless you file after 4 years from the chapter 7.

Terry L. :

So, you can file, but you'd have to pay that 100% for it to do any good, so why even file in the first place. You are best to try to negotiate something with the creditor.

Terry L. :

Most governmental debts are not dischargeable either, so you would likely have to pay it back.

Terry L. :

Even if you were eligible.

Terry L. :

Do you have any questions/

Customer:

It'll be a 9.2 million dollar fine.

Customer:

Essentially. Dept of Finance said we weren't licensed properly to accept clients. We fought them for almost a year. They went away. This came out of no where, 15 months later.

Terry L. :

You would need to look at chapter 11 then.

Terry L. :

You might be able to get some assistance there.

Terry L. :

You would be inelligible to file Ch13...too much debt.

Terry L. :

There is a cap, and it's only about $360k for unsecured debts

Customer:

You are saying fines from the government aren't disachargeable?

Terry L. :

You would have to review a chapter 11 case with a local chapter 11 attorney. They would be able to be paid thru that case.

Customer:

ok

Terry L. :

Most governmental fines are excepted from discharge, yes

Customer:

Is there a list I can look at to see what fines are allowed?

Terry L. :

they can be part of a reoganization under ch11 then

Customer:

when you say reorganization, you mean, 'put me on a payment plan'?

Terry L. :

The BK code is Title 11

Terry L. :

Chapter 11 is a reorganization

Terry L. :

it pays debts based on the type and class of debt.

Terry L. :

It has many variables, so it would be best to speak to a local chapter 11 attorney to go that route.

Customer:

ok

Customer:

thanks

Terry L. :

Best of luck to you. Let me know if you have any new questions, feel free to request me.

Terry L. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.


IT keeps saying I have to reply to you. I did. So I am just doing this one in case the system is frozen. No need to reply. :)

ok, no worries. thanks and good luck!
Terry L. and other Bankruptcy Law Specialists are ready to help you

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