Does Bankruptcy Cover Traffic Tickets in Arizona?


If you’re dealing with debt that seems insurmountable, Chapter 7 bankruptcy may be the solution. Assuming you are approved, the court will discharge your unsecured debts in their entirety. While Chapter 7 bankruptcy eliminates many forms of debt, including those stemming from credit cards and personal loans, filers should know that some debts cannot be discharged.

Under the bankruptcy code, you are still responsible for paying debt stemming from student loans, child support, alimony, and certain tax bills. Additionally, debtors may still be responsible for paying bills related to traffic tickets.

Will Bankruptcy Get Rid of My Traffic Fines and Fees?

If you owe a significant amount of money as a result of fees related to traffic violations, you may be wondering if bankruptcy can help you get out of debt. While Chapter 7 bankruptcy rids individuals of many types of debt, unfortunately traffic fine are not one of them.

Non-dischargeable traffic fees include the following:

  • Traffic violations
  • Traffic tickets
  • Parking tickets
  • Toll violations
  • Court fines and fees related to traffic cases

While Chapter 7 bankruptcy doesn’t discharge most types of traffic debt, you may be able to reduce the financial burden they have on your life by declaring Chapter 13 bankruptcy instead. If your case is approved, you will enter into a repayment plan that enables you to pay off your traffic tickets and fees slowly over a period of time.

Typically, individuals have three to five years to repay their traffic debts after a Chapter 13 bankruptcy declaration. Filing Chapter 13 bankruptcy to deal with traffic tickets can be particularly helpful in the event that the court suspended your driver’s license because of a failure to pay.

Can I Get My Driver’s License Reinstated by Filing Bankruptcy?

It’s no secret that losing your license can put a serious strain on you and your loved ones. Without a license, you may be unable to work, go grocery shopping, or even drive your children to and from school and other activities, leaving others to fill the burden.

Fortunately, filing Chapter 13 bankruptcy can help you get your license reinstated if it was suspended due to traffic or parking violations. Once you begin making monthly payments on your traffic fine debt, you may be able to get your license back.

Moreover, you will likely be required to pay only a portion of your total traffic fine debt rather than the whole amount after filing.

In some cases, declaring Chapter 7 bankruptcy can also help you get your license back. If you drive without insurance and are sued after being involved in a car accident, the court can suspend your license due to inability to pay.

When you file Chapter 7 bankruptcy, an automatic stay will stop creditors from collecting on your debts. This stay may also apply to debts stemming from car accidents.

Note that debts involving drunk or intoxicated driving cases will not be eliminated under Chapter 7 bankruptcy.

Can Chapter 7 Bankruptcy Help Eliminate Other Court Fines?

Declaring Chapter 7 bankruptcy can also help filers who are facing hefty court fees. In fact, individuals frequently face financial strife following a criminal or civil case. Depending on the circumstances of your specific legal case, filing Chapter 7 may help you eliminate debts to the court or another government agency. However, not all court fines are dischargeable under this option.

Typically, fines imposed as punishment can not be discharged with a bankruptcy declaration. On the other hand, fines levied for reimbursement are usually dischargeable. Speaking to a knowledgeable bankruptcy attorney is the best way to determine whether filing Chapter 7 bankruptcy will help rid you of your court fines.

If you’re thinking about declaring bankruptcy, it’s important to know that this solution is not without its drawbacks.

Because chapter 7 bankruptcy results in all your debts being eliminated, the effect on your credit score is profound; in fact, you can expect this type of bankruptcy to remain on your report for up to a decade and impact your ability to secure loans.

On the other hand, chapter 13 bankruptcies only stay on a credit report for up to seven years because filers are still paying off a portion of their debt.

We Can Help You Successfully Navigate Bankruptcy

At JacksonWhite Law, we understand that there are times when bankruptcy is the only option. If you need legal help with your financial circumstances, don’t hesitate to contact our experienced bankruptcy attorneys — even if you’ve already filed but were denied. We’ll work tirelessly to help you get your head back above water. To learn more about what we do, call today or contact our team online. We look forward to speaking to you.

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