A civil penalty is one that is for a minor offense. For example, tickets for speeding, parking tickets or failing to stop at a stop sign are all considered minor offenses. A criminal traffic offense is a violation that might subject you, upon conviction, to incarceration. For example:. If you have a criminal traffic ticket that cannot be discharged in either a Chapter 7 or Chapter 13 bankruptcy, you can still receive a limited amount of protection from being sent to jail for not paying your tickets.
Moreover, you will likely be required to pay only a portion of your total traffic fine debt rather than the whole amount after filing. In some cases, declaring Chapter 7 bankruptcy can also help you get your license back. If you drive without insurance and are sued after being involved in a car accident, the court can suspend your license due to inability to pay.
When you file Chapter 7 bankruptcy, an automatic stay will stop creditors from collecting on your debts. This stay may also apply to debts stemming from car accidents. Note that debts involving drunk or intoxicated driving cases will not be eliminated under Chapter 7 bankruptcy.
Declaring Chapter 7 bankruptcy can also help filers who are facing hefty court fees. In Chapter 13, you'll pay these debts in full through your repayment plan. Debt related to fraud might get eliminated. A fraud-related debt won't be discharged if a creditor files a lawsuit called an adversary proceeding and convinces the judge that the obligation should survive your bankruptcy.
Such debts might result from lying on a credit application or passing off borrowed property as your own to use as collateral for a loan. Find out more about bankruptcy fraud. This article provides an overview of the bankruptcy process only.
Filing for bankruptcy is complicated, and the information provided here is not exhaustive. You can learn more about what bankruptcy can do for you by speaking with a local bankruptcy lawyer, or, for a more in-depth explanation of both Chapter 7 and Chapter 13 bankruptcy, see The New Bankruptcy by Attorney Cara O'Neill.
The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state.
Talk to a Lawyer. Grow Your Legal Practice. Meet the Editors. What Bankruptcy Can and Cannot Do. Bankruptcy is a powerful tool for debtors, but some kinds of debts can't be wiped out in bankruptcy. Read on to learn more about: what you can expect in both Chapter 7 and Chapter 13 the benefits offered by Chapter 13 alone, and things that can't be accomplished by filing for bankruptcy.
What Bankruptcy Can Do Bankruptcy allows people struggling with debt to wipe out certain obligations and get a fresh start. Here are some of the things you can expect regardless of whether you file for Chapter 7 or Stop Creditor Harassment and Collection Activities Once you file, the court puts in place an order called the automatic stay. Stop a Foreclosure, Repossession, or Eviction at Least Temporarily The automatic stay will stop these actions as long as they're still pending.
An eviction that's still in the litigation process will come to a halt after a bankruptcy filing. But the stay will likely be temporary. Keep in mind that if your landlord already has an eviction judgment against you, bankruptcy won't help in the majority of states.
Learn more about evictions and the automatic stay. Foreclosure and repossession. Although the automatic stay will stop a foreclosure or repossession, filing for Chapter 7 won't help you keep the property.
If you can't bring the account current, you'll lose the house or car once the stay lifts. By contrast, Chapter 13 has a mechanism that will allow you to catch up on past payments so you can keep the asset.
Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Talk to a Lawyer. Grow Your Legal Practice.
Meet the Editors. If you've lost your driver's license due to unpaid traffic fines, Chapter 7 bankruptcy may help reduce your debt so you can pay the fines and get your license back. Question Some time ago I got fined for a traffic violation. Answer You can't discharge eliminate traffic fines in Chapter 7 bankruptcy.
Filing for Chapter 7 Bankruptcy Might Help You Pay Traffic Fines Just because you can't discharge your traffic fines in Chapter 7 doesn't mean that filing a bankruptcy case won't help you. You'll likely need to speak with a local bankruptcy attorney about this issue because whether the traffic fines will be nondischargeable criminal fines in Chapter 13 bankruptcy will depend on: the type of traffic violation you committed, and whether your state classifies the fine as civil or criminal.
Talk to a Bankruptcy Attorney Whether filing for bankruptcy can help you get your driver's license back will depend on many factors including the laws of your particular state. Talk to a Bankruptcy Lawyer Need professional help?
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