There are endless fines and fees associated with all walks and circumstances of life, just seems to be the theme these days. Typically, bankruptcy can assist in getting rid of the unwanted and unrelenting debt that plagues many people in society. But what about the miscellaneous fees and fines, from parking tickets, restitution, or reimbursement expenses?
First, you will want to determine what entity you owe the fine to—it could be from a federal, state or city government organization, of even an entity acting for the government.
Minnesota Bankruptcy Fines Meant to "Punish"
Fines meant to “punish” for some sort of action are not dischargeable in a chapter 7 bankruptcy. Why? Because those are fines associated with violating the law. Those types of penalties and fines are dischargeable in a chapter 13, but the fines cannot include criminal sentencing of any sort. Again, why? Criminal sentencing is a punishment for the action committed, something even bankruptcy attorneys cannot disregard, and the fine or restitution must be repaid.
There is a silver lining if you are filing a bankruptcy; it is called the automatic stay. The automatic stay protects the debtor from creditors collecting on the debt that is owed to them. This means, if you file a bankruptcy, you will have the temporary reprieve from the entity that is trying to collect from you. It is not a concrete solution, but can give you time to discharge debt, and be able to come up with the payment owed.
Dischargeable Bankruptcy Fines in Minnesota
Fines that seek reimbursement are dischargeable. This can be the case for the city performing a function and sending you the bill or receiving overpayment on public assistance. It will depend who the issuing agency is and what the fine is sought for, though. Contact the issuing agency or a Kain & Scott bankruptcy attorney for clarification!
Non-Dischargeable Fines and Penalties in Minnesota Bankruptcy
In a chapter 7 if a fine or penalty is not dischargeable, you have bought yourself three to four months to save up money and move forward with less debt. In a chapter 13 bankruptcy, your attorney will propose a payment plan over a three of five year period to pay that restitution or fine in full throughout the course of your bankruptcy.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT
You have miscellaneous parking tickets and other assorted penalties on your credit report, so what should you do? Visit www.KainScott.com to contact a Kain & Scott attorney for a free consultation to discuss the best option for you!
