Is Traffic and Parking Ticket Debt Eliminated by Going Bankrupt?
There are many different reasons you can owe money and be in debt.
Loans are the most common example: you borrow money, fail to pay it back, and end up in debt.
When you owe more money than you can afford to repay, bankruptcy becomes a viable solution.
It’s an opportunity to discharge your unsecured debts and start afresh.
However, what happens to other ‘debts’ you owe during bankruptcy?
For instance, what if you owe money for traffic or parking tickets?
Is this not technically a debt as someone has charged you to pay them, but you’re unable to do so?
To understand what happens, we have to look at the Bankruptcy and Insolvency Act.
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Debts not released by order of discharge
Under Section 178 (1) of the Bankruptcy and Insolvency Act, various debts are listed as not being discharged with bankruptcy.
The first inclusion is:
“any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance of bail”
As you can see, traffic or parking fines fall into this category and are therefore not released by order of discharge.
So, you will have to keep paying them if you file for bankruptcy.
It is possible to reduce a fine or get in completely chalked off your record, but you’d have to appeal to the court for this.
In most cases, this request is only granted if it was a dubious fine or one that was wrongly given out.
Bankruptcy can help you pay traffic or parking fines
While your bankruptcy won’t discharge these fines, it can help you pay them.
This is because a lot of your unsecured debts will be wiped out by bankruptcy.
In turn, this makes it easier for you to pay the fines as you don’t have to worry about other debt repayments.
Often, most people neglect to pay fines because they have too many other payments to make.
Bankruptcy gives you a fresh start to get your finances in order and budget accordingly to pay any fines on your record.
So, if you’re trying to get rid of them this way, it won’t work.
However, as shown above, declaring bankruptcy can make it easier for you to pay these fines afterwards.
Contact a licensed insolvency trustee for debt-relief services
If you’re thinking about declaring bankruptcy, you need to contact a licensed insolvency trustee.
We’re available to help you throughout the bankruptcy process, ensuring that everything runs smoothly and you get the outcome you’re 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, it’s our mission to help you become debt-free as soon as possible.
Call us today, or fill in our online evaluation form, to book a free consultation with a licensed insolvency trustee!
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