Understanding Bankruptcy: Why Tickets are not Discharged
Bankruptcy, a legal proceeding involving a person or business unable to repay outstanding debts, has its own complexities. One such complexity is the fact that not all debts are discharged, particularly fines and penalties imposed by the court, including tickets.
The Intricacies of Bankruptcy
Bankruptcy can be a lifeline for those deep in debt. However, it’s essential to understand the intricacies before filing. For instance, it’s crucial to know that Tickets Are Not Discharged By Bankruptcy.
Debts Exempt from Bankruptcy
Only a handful of debts are exempt from bankruptcy or a consumer proposal. These exemptions are outlined in section 178 of the Bankruptcy and Insolvency Act.
- Fine or Penalty: Any fine or penalty imposed by the court isn’t released by an order of discharge.
- Restitution Order: Restitution orders or orders similar in nature are excluded from discharge under bankruptcy.
- Debt from Recognizance or Bail: This type of debt is also not released by an order of discharge.
In simpler terms, parking and traffic tickets, which are fines imposed by a court, are not released by bankruptcy or a consumer proposal.
Understanding Tickets and Bankruptcy
One of the common misconceptions about bankruptcy is that it absolves all debts. However, as we’ve seen, this isn’t the case.
The Role of the Ministry of Transportation
If outstanding tickets aren’t paid, the Ministry of Transportation may require payment when you renew your plates.
The Role of Municipalities
Municipalities often retain collection companies that will contact you regularly requesting payment for unpaid tickets.
Navigating the Complexities
If you don’t believe you owe your outstanding tickets, there are dispute resolution processes at most government levels.
Dispute Resolution Process
You can undertake these processes yourself or retain a representative to do it on your behalf.
Contacting the Ticket Issuer
If you wish to work out payment arrangements with the issuer, you have to contact them directly. However, this often requires an appearance in court and associated costs when certain time limits expire.
Bankruptcy, Consumer Proposal, and Tickets
If tickets are your only debt, then a consumer proposal or bankruptcy might not be the right solution for you. However, if you have other debts that you stop paying after filing for bankruptcy or a consumer proposal, you might be able to direct more money to your outstanding tickets and pay them off sooner.
Consultation with a Licensed Insolvency Trustee
Before making any decisions, it’s advisable to have your financial situation reviewed by a Licensed Insolvency Trustee. They can provide expert advice based on your individual circumstances.
Conclusion
In conclusion, while bankruptcy can be a way to start afresh financially, it’s essential to remember that not all debts, such as tickets, are discharged. Therefore, it’s advisable to consult with a Licensed Insolvency Trustee to understand what’s best for your situation.
