Under chapter 7 some types of parking tickets can be discharged. These are the following – parking tickets; red light tickets; standing compliance; automated speed enforcement (cameras); and, automated traffic law enforcement (cameras).
All tickets which are older than 3 years from the date of filing can be waived off under chapter 7 bankruptcy.
If the tickets are lesser than 3 years, you will have to pay the original amount. Normally if the ticket is $50 then after the deadline it doubles into $100. So if you are filing for Chapter 7 bankruptcy, it goes back to $50. You need to pay this amount in 6 months to 5years. After paying all the installments, the tickets will be discharged. You will have to pay the full amount if you are fined during the installment period.
What if the car is towed or booted by the city?
If you enroll in the program and want the car back, you must pay 25% of the original amount fined if the ticket is lesser than 3 years. Example: $10,000 in tickets; $8,000 less than 3 years; going back to the original amount: $4,000: Immediate payment of about $1000.
These are the steps that need to be taken–
- Give your name and address
- List your license number and license plate numbers that you acquire both in the present and the past.
- If you have received a parking ticket or your license is suspended then state the reason for the same.
File under chapter 7 or chapter 13?
You should know what you are up against; if you can pay the debts then go for chapter 13 rather than chapter 7. If most of your tickets are younger than 3 years it is better if you file for chapter 13 bankruptcy as then you will have concession as well as you will have your assets secured.
Should someone convert their existing chapter 13?
3 year time period is calculated from the date you have filed for chapter 13. So if you have converted your chapter 7 bankruptcy into chapter 13, that date is irrelevant and may not be of any use. So always calculate your 3 year time period from when you originally filed for bankruptcy under chapter 13.
Will the tickets waive of?
Yes, it will be if it is more than 3 years and if you have filed under chapter 7 bankruptcy. You will need to repay all the tickets if it is younger than 3 years. After the program is complete the city will discharge the tickets, but if you get a ticket during the process you will have to pay for it.
In case you fall behind in the program, the city will give you 2 chances to cover it and not more than that, and if you can’t then you would even have to pay for the ones that are older than 3 years with the rest. So if you are 100% sure that you will be able to repay during the process, then only you should file for chapter 7 otherwise you are better off with chapter 13 bankruptcy.