Filing for Chapter 13 is the right option for many individuals facing financial distress despite the fact that they are earning a steady income. Many people are unable to climb out to debt on their own when a short-term job loss, medical issue, divorce or expensive repair sets them back. By developing a fair repayment plan, customized to their specific situation, people can pay down what they owe while holding on to their home and vehicle.
Often, someone considering bankruptcy relief does so due to debts related to healthcare expenses and credit-card balances. In these cases, when the debtor has complied with the terms of the repayment schedule lasting three or five years, any remaining debts are discharged. While certain debts cannot be eliminated through Chapter 7 bankruptcy, such as child support obligations and criminal fines, some people wonder if money owed for traffic violations and related court costs can be included within a Chapter 13 repayment plan.
Generally, fines and penalties associated with civil infractions, such as those stemming from traffic violations, can be included in a Chapter 13 repayment plan. This is possible because the plan will dictate that the money owed to the government will be repaid over the timeframe lasting three to five years. The filer is required to demonstrate the ability to repay these alongside other unsecured debts. If your driver’s license has been suspended due to unpaid fines, a Chapter 13 bankruptcy might also enable you to remove that sanction so that you can get back behind the wheel.
Filing for Chapter 13 bankruptcy is not just a way to manage credit card bills, but can be a comprehensive program that establishes a stable financial framework based on your particular circumstances. The first step is meeting with an experienced attorney who can review your situation and advise you regarding the best approach to dealing with money owed for traffic fines and other obligations.
At Jeff Field & Associates, we can structure a repayment strategy that conforms with federal and state legal requirements while putting you in the best possible position to move forward. Our firm represents Georgians in Chapter 13 proceedings as well as other types of debt relief matters. To schedule a consultation in our Douglasville, Gainesville, Bogart, Lawrenceville, Marietta or Decatur office, please call 404-381-1278 or contact us online.