Contact A Licensed Insolvency Trustee For Debt
If youre thinking about declaring bankruptcy, you need to contact a licensed insolvency trustee.
Were available to help you throughout the bankruptcy process, ensuring that everything runs smoothly and you get the outcome youre after.
We also offer advice on whether or not this is the right move to make.
Lots of debt-relief options exist, so we will go through all of them to find one that fits you best.
Either way, its our mission to help you become debt-free as soon as possible.
In Most Cases Bankruptcy Will Not Wipe Out Fines Or Penalties You Owe To A Government Agency
When you owe money to the federal, state, or local government, usually you cannot get rid of the debt in bankruptcy. Fines and penalties owed to government agencies are no exception. For the most part, you cannot discharge government fines and penalties in bankruptcy. There are rare exceptions, however. If the government wants you to pay money for property you damaged, you may be able to discharge the debt in bankruptcy.
Does Bankruptcy Eliminate All Of My Debts
You might be wondering which of your debts can be included in a bankruptcy, eliminating your responsibility to try and repay them. The simplest answer is that a bankruptcy eliminates most, if not all, of what are known as unsecured debts. These include any credit cards, lines of credit, personal loans, payday loans and income tax debt. When you file for bankruptcy, you will no longer have to worry about repaying these debts.
On the other hand, there are certain types of debt that cannot be eliminated by filing for bankruptcy. Even after you complete the bankruptcy process, you will still be responsible for repaying the following debts:
Secured debts, such as a mortgage or car loan. Because these forms of debt are guaranteed by an asset , you need to continue to make payments otherwise, your creditors can repossess your vehicle or your property.
Child support or alimony. These payments must continue even if you file for bankruptcy. If youre behind on your payments, your former spouse or partner will be considered a preferred creditor in your bankruptcy claim.
Student loans, if youve been out of school for less than seven years. If its been more than seven years since you were a full-time or part-time student, then student loan debt can be included in bankruptcy.
Any court fines, penalties, bail bonds or restitution imposed from a criminal or civil trial.
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How Bankruptcy Can Help With Court Fines
If you are fined with a penalty that cannot be discharged, there are other ways bankruptcy can help. Filing bankruptcy can free you both mentally and financially. This can help you focus on getting through your case without the added stress of other debts.
Filing Chapter 7 can also help you pay for a defense attorney. A Jacksonville bankruptcy lawyer will help you manage the debts incurred during your trial. You might have to liquidate assets, stop paying creditors or come up with another way to free yourself financially making strategic planning an invaluable asset. Filing chapter 7 bankruptcy helps make this process easier.
Chapter 13 can help in non-criminal cases that are not able to be discharged. After a period of 3 to 5 years of consistent payments, your debt may be eligible for release. With the help of a Jacksonville bankruptcy lawyer, you can determine if Chapter 13 is right for you. If you can prove you have the necessary income to make payments, the court is likely to approve your plan.
What Is A Statute Of Limitations
A statute of limitations refers to a state law dictating for how long you can face charges for misdemeanors like traffic offenses. These statutes effectively set the time frame for how long a prosecutor can wait before they file charges.
Another way of looking at it is the time frame between the moment the crime is committed and when the crime has been charged. If you have ever been in a car accident, for example, you might understand the statute of limitations as it refers to the time frame you have to file a claim for compensation.
Traffic violations are different no matter which state issues the violation.
- A traffic ticket is not the same as being accused of a crime, something that starts the time limit on that statute of limitations.
- Instead, a traffic ticket is being charged with a crime which is what happens at the close of a statute of limitations.
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Find Out How Filing For Bankruptcy Can Help With Court Fines
Financial difficulties resulting from a criminal matter are one of the many reasons that people file for bankruptcy. Clearing criminal court finesor any fines owed a government agencycan be a great way to solve the problem, but it isn’t always possible. Whether you can discharge a fine in bankruptcy will depend on why you were assessed the fine to begin with.
Even if you can’t clear the fine, filing for bankruptcy might help in other ways. Getting rid of qualifying debt in Chapter 7 bankruptcy will free up more money to pay your obligation. Or, you can get additional time to pay by filing for Chapter 13 bankruptcy.
Talk To Our Pennsylvania Bankruptcy Attorneys If You Have Court Ordered Restitution
If you believe your restitution payments will make it difficult to pay your monthly expenses, you have options. While avoiding paying restitution is not one of the available options, you could find relief by filing for bankruptcy. Our Montgomery County bankruptcy lawyers are committed to assisting those struggling with financial obligations. Just because you cannot discharge restitution does not mean bankruptcy is not beneficial. Call 701-6519 to talk with one of the experienced attorneys at Young, Marr & Associates.
Bankruptcy Resource Center
Financial difficulties resulting from a criminal matter are one of the many reasons that people file for bankruptcy. Clearing criminal court finesor any fines owed a government agencycan be a great way to solve the problem, but it isnt always possible. Whether you can discharge a fine in bankruptcy will depend on why you were assessed the fine to begin with.
Even if you cant clear the fine, filing for bankruptcy might help in other ways. Getting rid of qualifying debt in Chapter 7 bankruptcy will free up more money to pay your obligation. Or, you can get additional time to pay by filing for Chapter 13 bankruptcy.
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Bankruptcy As An Option After An Accident
If you are financially responsible for a car accident you need to take a look into all the options that are available for you. One of the options is that you may be able to file for bankruptcy to discharge those debts depending on your circumstances. Normally your debts related to a car accident are dischargeable. This is true whether the debts are related to personal injury or property damage. You would simply list the debt in a chapter 7 bankruptcy and the debt would be discharged.
There are two exceptions where the debts arising from a car accident are not dischargeable in bankruptcy.
Bankruptcy And Traffic Fines
Although toll road fines and traffic tickets are considered to be nondischargeable, bankruptcy can still be a useful financial tool to help get these debts under control. A Chapter 13 bankruptcy, sometimes referred to as debt reorganization, can enable an individual to establish a workable repayment plan for any debts that cannot be discharged. With this type of plan, the debtor generally gets a sensible timeline for repayment and is able to avoid incurring additional collection fees. Alternatively, for those who have a large amount of dischargeable debt and have an income below the Maryland median or meet the Means Test, it may be most advantageous to file for Chapter 7 bankruptcy. Under this scenario, the resulting reduction in financial obligations may free up more resources that can be put toward paying off any traffic or toll road fines.
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Does Bankruptcy Cover Traffic Tickets In Arizona
If youre dealing with debt that seems insurmountable, Chapter 7 bankruptcy may be the solution. Assuming you are approved, the court will discharge your unsecured debts in their entirety. While Chapter 7 bankruptcy eliminates many forms of debt, including those stemming from credit cards and personal loans, filers should know that some debts cannot be discharged.
Under the bankruptcy code, you are still responsible for paying debt stemming from student loans, child support, alimony, and certain tax bills. Additionally, debtors may still be responsible for paying bills related to traffic tickets.
Work With A Local Bankruptcy Attorney
No two financial profiles are the same. If you find yourself facing financial difficulty, contact an experienced local bankruptcy attorney to better understand all of your options. Contact Sirody & Associates for a consultation to learn if Chapter 7 or Chapter 13 bankruptcy may be right for you. Our bankruptcy attorneys will take the time to gain a thorough understanding of your unique situation and will outline different scenarios for you to consider.
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Traffic Fines Can Only Be Discharged In Chapter 13 Bankruptcy
One of the exceptions to discharge in a Chapter 7 case are fines and penalties owed to a governmental unit, including traffic tickets. They can, however, be discharged in a Chapter 13 case as long as they are not considered a criminal fine. If your traffic issues have resulted in a criminal fine, Chapter 13 may still be useful as it will give you a way to repay the fine over 3 5 years.
What Can Be Included In A Chapter 13 Repayment Plan
Non-criminal debt owed to the government such as fees or penalties relatedto traffic offenses can be included in a Chapter 13 repaymentplan. You can restructure debt obligations and the bankruptcy filing helpsstop collection attempts from creditors, including the government. Debtorscan use Chapter 13 to help eliminate such fines and penalties by payingwhat they can afford.
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Debts Arising From Auto Accidents
Individuals who get into accidents without insurance can also have their drivers license suspended. Whenever they are sued and a judgment passed against them, such individuals are often required to pay the aggrieved party damages in full. Sometimes, their insurance may not be enough to pay for all damages, and the aggrieved partys insurance company can request the Florida Department of Motor Vehicles to suspend your license.
Drivers may also have their drivers license suspended following a drunk driving accident or malicious accident. In such cases, financial obligations to pay any damages for bodily injury, criminal fees, restitution, or court fees are not dischargeable in Chapter 7 bankruptcy. Such individuals will have to pay these debts in full or devise a payment plan for their drivers license reinstated.
While Chapter 7 bankruptcy may not help discharge such debts, filing may indirectly help such individuals and have their drivers license reinstated. Such individuals will most likely struggle to pay medical bills and credit card balances, and filing for Chapter 7 bankruptcy can eliminate such debts and free up some money in their budget. In turn, they can use the money to pay any non-dischargeable debts, such as traffic tickets and other debts resulting from auto accidents.
Things To Do Before Filing Bankruptcy
If you plan to file bankruptcy, there are several things you should or must do prior to filingor even before retaining an attorney.
Here is a brief, non-exhaustive list of the dos and don’ts before filing bankruptcy.
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Does Filing Bankruptcy Erase All Debts
No, there are certain non-dischargeable debts that will survive a bankruptcy filing. Common examples of debts bankruptcy doesnt eliminate are tax debts, domestic support obligations like child support and alimony, and for the most part student loans. Neither Chapter 7 nor Chapter 13 bankruptcy can discharge these types of debts. However, some debts that cant be eliminated in a Chapter 7 are dischargeable in a Chapter 13.
One Free Phone Call To Selby Legal Can Save You Thousands
If you think you need an attorney, you probably have a lot of questions. It doesnt make sense to hire a professional until you know that you need that service, and lawyers are no different. Thats why we offer free consultations to anyone to help them decide.
Sometimes, it might make sense to go to traffic court to deal with your speeding ticket without a lawyer. Likewise, bankruptcy isnt automatically the best answer to someones financial problems. We can usually figure that out during a phone conversation, answering all the questions, including the expected price estimate, and agreeing on the best way forward. George C. Selby, Esq. is generous with his time up front because he wants to make sure every client is satisfied with the outcome.
Get in touch with us to set up a free consultation by clicking the button here or using the contact form at the bottom of this page to inquire whether our services are right for you.
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Can You Discharge Traffic Tickets In A Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows you to discharge numerous types of debts, but excepts from discharge specific items under § 523 of the bankruptcy code. Under § 523 a debt is not dischargeable if it is for for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss, other than a tax penalty. A traffic ticket or violation is categorized as a government fine that is exempt for discharge. Any traffic ticket or violation would not be discharged in your Chapter 7 bankruptcy. You would still be responsible for repaying any outstanding traffic ticket after your bankruptcy case.
Parking citations or parking tickets also fall under the category of a government fine that is not dischargeable in a Chapter 7 bankruptcy. Any parking ticket that you had prior to the filing of your bankruptcy case would not be entitled to a discharge under § 523
Debts Never Discharged In Bankruptcy
While the goal of both Chapter 7 and Chapter 13 bankruptcy is to put your debts behind you so that you can move on with your life, not all debts are eligible for discharge.
The U.S. Bankruptcy Code lists 19 different categories of debts that cannot be discharged in Chapter 7, Chapter 13, or Chapter 12 . While the specifics vary somewhat among the different chapters, the most common examples of non-dischargeable debts are:
- Alimony and child support.
- Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years.
- Debts for willful and malicious injury to another person or property. âWillful and maliciousâ here means deliberate and without just cause. In Chapter 13 bankruptcy, this applies only to injury to people debts for property damage may be discharged.
- Debts for death or personal injury caused by the debtorâs operation of a motor vehicle while intoxicated from alcohol or impaired by other substances.
- Debts that you failed to list in your bankruptcy filing.
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Chapter 7 Vs Chapter 13
Chapter 7 and Chapter 13 are the two most common types of personal bankruptcy.
In a Chapter 7 bankruptcy, a trustee appointed by the bankruptcy court will liquidate many of your assets and use the proceeds to pay your creditors some portion of what you owe them. Certain assets are exempt from liquidation. Those typically include part of the equity in your home and automobile, clothing, any tools you need for your work, pensions, and Social Security benefits.
Your nonexempt assets that can be sold off by the trustee include property , a second car or truck, recreational vehicles, boats, collections or other valuable items, and bank and investment accounts.
In Chapter 7, your debts are typically discharged about four months after you file your bankruptcy petition, according to the Administrative Office of the U.S. Courts.
In a Chapter 13 bankruptcy, by contrast, you commit to repaying an agreed-upon portion of your debts over a period of three to five years. As long as you meet the terms of the agreement, you are allowed to keep your otherwise-nonexempt assets. At the end of the period, your remaining debts are discharged.
In general, people with fewer financial resources choose Chapter 7. In fact, to be eligible for Chapter 7, you must submit to a means test, proving that you would be unable to repay your debts. Otherwise, the court may determine that Chapter 13 is your only option.
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