Chapter 13 provides a tool for fixing problems with traffic tickets and civil fines

​Debts owed a governmental entity for a civil penalty or fine are not dischargeable in a Chapter 7 bankruptcy under 11 U.S.C. §523(a)(7) (the Bankruptcy Code section about exceptions to discharge).  Examples of such debts might include fines owed for parking tickets, certain types of traffic infractions, and/or toll violations. In contrast, Chapter 13 allows a discharge for these types of civil fines or penalties upon successful completion of a Chapter 13 plan because 11 USC §1328 (the Bankruptcy Code section about a Chapter 13 discharge) makes no mention of §523(a)(7).   A discharge through a Chapter 13 bankruptcy is broader than a Chapter 7 discharge and allowing discharge of civil or traffic fines when Chapter 7 does not is one such example of the broader discharge available through Chapter 13. 
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Criminal fines or restitution debts are not dischargeable in either Chapter 7 or Chapter 13, but Chapter 13 can provide a way to propose a plan to repay all or a portion of criminal fines over three to five years and it may be possible to specially classify such debts to repay criminal fines ahead of other unsecured claims under certain circumstances.
 
If a driver’s license has been suspended or revoked because of the failure to repay fines, the filing of a Chapter 13 bankruptcy will allow a driver’s license to be reinstated.  If a license has been suspended or revoked as a result of DUI, Habitual Traffic Offender, or for some criminal sentence, although the filing of a Chapter 13 may not be effective to reinstate a license there still may be benefits to filing as to other debts. 
 
If Court or traffic fines have resulted in a driver’s license suspension or revocation, it will be important to obtain a copy of a complete driving transcript report from the DMV so that all fines or obligations that are causing a problem with a driver’s license can be included and listed on the Bankruptcy schedules. ​