Skokie Bankruptcy Attorney Talks About Parking Tickets And Chapter 7

Parking tickets are non-dischargeable debt according to Skokie bankruptcy attorney.  What I mean by non-dischargeable is the debt is going to survive a Chapter 7 bankruptcy filing.  Specifically under the United States Bankruptcy Code, parking tickets are considered a find to a governmental agency or a debt owed to the government.  You can still file a Chapter 7 bankruptcy and include your parking tickets in your filing because by law, all of your debt must be listed on your schedules.  However, please be aware that the debt owed to the parking tickets is going to survive the bankruptcy. 

What many clients do is they will file a Chapter 7 to eliminate whatever debt they can and then make payment arrangements after the case is over for any non-dischargeable debt.  In the case of parking tickets, your village or municipality might be willing to work out a payment plan with you to keep your license from being suspended.  

In the event that you cannot pay the non-dischargeable debt after your Chapter 7 filing, you can elect to put the particular creditor into a Chapter 13 repayment plan.  For example, if you have $5000 worth of parking tickets, you can reorganize those in a Chapter 13 and pay those back over the next 3 to 5 years.  Keep in mind once again that parking tickets are non-dischargeable so you want to pay those off 100% on the dollar to ensure that you are not going to owe any money after your Chapter 13 is over. 

If your license is being threatened for suspension based on your failure to pay parking tickets, then Chapter 13 will allow you to keep your license unsuspended while you are in your repayment status.  If something were to happen in your Chapter 13 were you are not able to make your payments, your case will be dismissed and your license may be suspended once again for nonpayment of those parking tickets.

 

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