Parking fines are the bane of many a driver and you would be surprised at how much is owed annually in outstanding parking fines. When filing for bankruptcy, one of the more common questions relates to parking fines and whether or not they too can be discharged with other unsecured debts. While the question may sound simple enough, the answer is not and this topic is one where a local specialist bankruptcy lawyer is ideal to best advise you.
Why is the issue of parking fines difficult? Whether these fines are discharged or not depends on a number of issues. Generally speaking, any government fine, whether criminal or civil, will not be discharged through a Chapter 7 bankruptcy petition. In fact, 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
However, when it comes to a Chapter 13 petition for bankruptcy, the Bankruptcy Code is a little different. This code stipulates under Section 1328(a)(4) that:
- excluded from discharge are restitution or criminal fines included in a sentence of the debtor’s conviction of a crime
A parking ticket is not a fine that is part of a criminal conviction. Therefore, it is possible to have that fine discharged. A second point to note, however, is that various courts interpret the law slightly differently, hence the need for a local specialist bankruptcy lawyer – they know how the local Bankruptcy Court generally rules on issues. A final point to consider under a Chapter 13 petition for bankruptcy is that you’re going to enter in to a payment’s schedule. This payment schedule may well pay off the parking fines anyway.
For all matters related to bankruptcy, consult a specialist lawyer. They are trained to advise you on these matters and have a good knowledge on how the bankruptcy court in your area deals with various issues. Unfortunately, while there is general consensus in each state on how to deal with bankruptcy, each court has its own interpretation – the courts are not equal in the way they interpret the Bankruptcy Code.
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