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Can items like red light tickets, town fines be included in

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Good morning. Can items like...
Good morning. Can items like red light tickets, town fines be included in a bankruptcy?
Submitted: 6 months ago.Category: Legal
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5/11/2017
Lawyer: KJL LAW, Lawyer replied 6 months ago
KJL LAW
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Good morning.

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Lawyer: KJL LAW, Lawyer replied 6 months ago

Hello and welcome to Just Answer. No attorney-client relationship or privilege is formed by speaking to an expert on this site, the answers are for general information. By continuing, you confirm that you understand and agree to these terms.

You can't discharge certain types of fines in a Chapter 7 bankruptcy. Unfortunately, traffic fines and fines issued by towns and cities, are not dischargeable.

Bankruptcy laws will not wipe out fines or penalties you owe to a governmental unit. under U.S. Bankruptcy Code. 11 U.S.C. § 523(a)(7). This section states as follows “to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit”.

I hope this helps.

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Lawyer: KJL LAW, Lawyer replied 6 months ago

But, keep in mind that parking tickets and other town/city fines can be discharged in a Chapter 13. Under a 13 fines including parking tickets are considered unsecured debt. They are treated like all other unsecured debts. For example, if the chapter 13 plan requires payment of ten (10%) per cent of unsecured debt and you have $150 in parking tickets, you’ll pay $15 towards the tickets. After all plan payments are made and the discharge is issued, the remaining amount is discharged.

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Lawyer: KJL LAW, Lawyer replied 6 months ago
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