Bankruptcy can discharge a lot of different types of debt. With debt like a traffic ticket, this is debt that is owed to either the city, county, or the state depending on where the citation was issued. In other words, this is debt owed to the government.
Debt Owed to Government Agencies
Typically, debt owed to government agencies is hard to discharge. They set the rules, and we have to play by them! With traffic tickets (moving and non-moving violations), this type of debt falls into the category of non-dischargeable debt. Meaning that it doesn’t go away with the filing of a bankruptcy. You will have to work out payment to the entity you owe.
Bankruptcy Can Temporarily Prevent Collection
The bankruptcy can stay collection of the debt under the ‘automatic stay’ that comes into place after filing. That prevents the government agency, or any debt collector from being able to collect for a time being.
With a chapter 7, this automatic stay is in effect for 90 or so days. Meaning that while you are in the bankruptcy, you most likely won’t have to pay the bill, but eventually it will come due, and if there is any interest, that interest can still be accruing during this 90 day timeframe.
Traffic Tickets Are Not Dischargeable in Bankruptcy
Even though traffic tickets aren’t dischargeable in bankruptcy, a lot of the most common types of debt are, like credit cards, personal loans and medical debt, even tax debt under the right circumstances can be dischargeable.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT
When the time is right, when you are ready to get your life back, reach out to Minnesota’s largest and nicest bankruptcy law firm, by going now to www.kainscott.com or give me a call at 1-800-551-3292. The consultation is free, so you really have nothing to lose! You will be thankful you did.