In this article, we’ll discuss the important topic of: “Can You File Bankruptcy on Court Fines?”
People file for bankruptcy because of their financial difficulties on account of a criminal issue. Paying bills may be a worrisome task. In case you are involved with fines imposed by government authorities, your state of affairs can get out of hand quickly. Whether or not you can release the penalties of a government agency, the mat
ter will rely upon why you had been assessed the penalty to start with in case of bankruptcy. Also, the debt related to the fines which could be dismissed is decided through various convictions. Even supposing it can’t get rid of your penalties, bankruptcy might nonetheless be a useful option. In this article, we will discuss if you can file bankruptcy on court fines.
Can You File Bankruptcy on Court Fines?
The court addresses fines in unique approaches: penalties, surcharges, forfeitures, tickets, etc. Usually, fines are charged by government authority units (nation, federal, municipal, etc.). Whether or not or no longer a satisfactory is capable of being discharged depends on whether it was a penalty, repayment or reimbursement, are the facts which decide if the fine will be released.
The fines are assigned to people who are disobeying the law in the form of punishment, like traffic rules violations. In issues like this, indirectly using bankruptcy to dismiss other debts is the prime choice.
Your penalty can be dismissed if they are in the form of reimbursement of any expense to the government because, in this case, the fines are not treated as a punishment. As an example, a penalty for rear-ending a central authority car by accident then, it is not accounted as a non-dischargeable fine towards you.
How can bankruptcy help with court fines (Chapter 7 and Chapter 13)?
If you decide to file bankruptcy on court fines, you will have to determine what type of bankruptcy you want to file. There are two chapters, Chapter 7 and 13 of bankruptcy. Both of these bankruptcy types are capable of getting rid of your unsecured debts.
- Chapter 7: You can cast off different forms of debts, which include clinical bills, personal loans, credit card debt, etc., in case you have sufficiently low income, which can assist you to be eligible for Chapter 7. Your creditors get paid from money earned from this procedure. The remaining amount you owe is removed after bankruptcy is dismissed.
- Chapter 13: Chapter 13 bankruptcy can come up with beyond the regular time for you to pay it, in case you have some different non-dischargeable debt or if your fine is hefty.
Can traffic fines be discharged by filing Chapter 7 bankruptcy?
Even though these penalties aren’t dischargeable in a chapter 7 bankruptcy, you still can wipe out these debts through a chapter 13 bankruptcy submission instead. If you file a chapter 13 bankruptcy, you will be permitted 3-5 years for repayment.
Which fines are non-dischargeable in bankruptcy?
We have listed some fines which many people wish to discharge by filing bankruptcy. The nature of the penalty is tough to recognize in some cases if it’s compensatory or penal. Even if it relies on the jurisdiction, the experts might disagree on discharge the fine.
- Lousy check fees: These are commonly non-dischargeable because it emerges in cases of criminal or civil fraud.
- Unpaid Street and bridge tickets: People argue that because the tolls are compensation for the bridge’s usage or avenue, it should be discharged.
- Criminal restitution fees: It might sound like compensation is given to the victim because of the word “restitution,” but the fact that here restitution is treated as penal was clearly stated by U.S Supreme Court, which makes it non-dischargeable.
- Income tax fines: Tax penalties are non-dischargeable in tax being less than three years old.
- Penalties for construction code violations: They are non-dischargeable because of being criminal.
- Fines for disrespecting the courtroom: Some professionals disagree with it being non-dischargeable, quoting that since it’s imposed on you because of your negligence towards a government authority order, and it should be dischargeable.
If you have any traffic tickets or court fines, then some minor cases like traffic tickets or small court fines where filing bankruptcy might prove helpful. We suggest you consult with a bankruptcy attorney for more information on filing bankruptcy on court fines.
Here’s an informative video on this topic: “Can You File Bankruptcy on Court Fines?”