can I put debt to the state on a bakruptcy

[kimmoy]

My drivers license has been suspended for sometime now. A few years ago, I purchased a vehicle for my sister in-law as a gift to help her get on her feet. When she got a job across town, she would run the tolls witjh out ever paying. The tickets were being sent to my previoys address, and I did not realize what was going on untill I was stopped for a traffic citation. The tickets have since been turned over to collections. Can I put this in a bankruptcy, and if so, will I be able to fix my driver license suspension after the bankruptcy?

 

[army judge]

My drivers license has been suspended for sometime now. A few years ago, I purchased a vehicle for my sister in-law as a gift to help her get on her feet. When she got a job across town, she would run the tolls witjh out ever paying. The tickets were being sent to my previoys address, and I did not realize what was going on untill I was stopped for a traffic citation. The tickets have since been turned over to collections. Can I put this in a bankruptcy, and if so, will I be able to fix my driver license suspension after the bankruptcy?

Fines, fees, and court costs assessed for violating the law are non-dischargeable debts.

Some examples of this type of non-dischargeable debt include traffic tickets and court-ordered criminal restitution.

11 U.S.C. § 523(a)(7) of the bankruptcy law provides that a Chapter 7 bankruptcy does not discharge an individual from any debt that is 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. Therefore, traffic tickets are clearly not dischargeable in a Chapter 7 filing.

There are, however, alternative approaches when attempting to discharge these type of debts.



Under Chapter 13, certain fines are dischargeable. Where the fine is imposed as a criminal penalty, it will be non-dischargeable; however, non-criminal fines will be dischargeable. The key is determining whether the parking or traffic violations are deemed "crimes" under the state law where the offenses occurred.


In a Chapter 13 bankruptcy, non-criminal traffic fines will be paid as part of a plan that will decrease the amount of ticket and allow for payment at levels that the debtor can afford by extending the debt over a period of three to five years.

So what can you do about non-dischargeable criminal fines or penalties? You can make payments for a portion of what you owe through a Chapter 13 Plan over a period of 3-5 years. The balance remaining at the conclusion of the Plan will not be discharged.

None of this is as easy as it may sound. It also isn't automatic.

I suggest you speak with a couple bankruptcy lawyers in your county.

As far as getting your license back, even if you paid the debt, that's not automatic, either. License revocations and suspensions are controlled by a specific agency in the various states. I suggest you discuss getting an active license back from the agency or court that took away your driving privilege.