Can I Get Rid of Parking Tickets With Bankruptcy in Illinois?
Bankruptcy can be a useful tool for debtors who face large debts from which they'll never recover, but it's not a guarantee to get out of all your financial obligations. As with any major financial decision, bankruptcy shouldn't be entered into without much consideration, and some expenses such as unpaid parking tickets aren't covered by bankruptcy protection. Illinois bankruptcy law prohibits discharging parking tickets in bankruptcy, forcing bankrupt debtors to pay their fines.
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Fines and Bankruptcy
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Neither Chapter 7 nor Chapter 13, the types of bankruptcy most commonly filed by individuals in Illinois, discharge some types of debt to the government, such as taxes, or certain judgments from civil court. As unpaid parking tickets are merely unsecured debt owed to an issuing authority, neither form of bankruptcy allows tickets to be discharged during proceedings. Debtors must list parking tickets as forms of unsecured debt when filing, and bankruptcy court takes those debts into consideration when building a plan to discharge debt.
Parking Tickets Paid in Bankruptcy
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In most cases, a bankruptcy court will consider unsecured parking-ticket debt when crafting its plan to eliminate the debtor's debt, and will set aside funds to pay the tickets during proceedings. If a debtor files Chapter 7 protection, some of the proceeds from liquidating his estate will be used to pay those debts, or the debts will need to be paid after emerging from bankruptcy. In a Chapter 13 case, the court's payment plan will include paying off those debts. Although the debtor won't make a payment directly to the authority that issued the parking tickets, the debt is paid in the course of bankruptcy proceedings or will need to be paid once the debtor emerges from bankruptcy.
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Impounded Vehicles
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If a debtor's vehicle is impounded or booted because of unpaid parking tickets, filing bankruptcy will force the impounding agency to release the vehicle because the property -- the vehicle -- is now under the jurisdiction of bankruptcy court. Releasing the vehicle from its boot or the impound lot doesn't negate the debt incurred due to unpaid parking tickets, however, as it's only intended to help a debtor return to a normal lifestyle through the use of his car. Parking tickets will then need to be paid, either through proceedings, or after emerging from proceedings.
Suspended Licenses and Bankruptcy
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Although decisions are made on a case-by-case basis, bankruptcy proceedings can sometimes reinstate a debtor's suspended or revoked driver's license in Illinois. Although licenses revoked for moving violations aren't affected by bankruptcy, those suspended because of a monetary judgment following a car accident or unpaid parking tickets may be reinstated. The debtor is still responsible for the debt that led to the revocation of the license in the first place.
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References
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