Traffic fines............

[magyar123]

As we all know state and local traffic fines are not dischargeable even if you list the county where you received the fine as a creditor.
There is a way around this, though. Pay all your fines like that with a credit card.
And when you file list that particular credit card in your petition.

[HHM]

Granted, the amounts are usually small enough that doing so is a non-issue, etc. But realize, doing that is "technically" BK fraud. SO, FYI.

[magyar123]

Granted, the amounts are usually small enough that doing so is a non-issue, etc. But realize, doing that is "technically" BK fraud. SO, FYI.

In my 2004 bankruptcy, of course old laws, I had included a card with a balance of over $5000, which was strictly traffic fines, leadfoot driving, rolling across stop signs, running red lights and of course parking tickets.
That CC outfit - Discovercard - never raised any objections to the dischargeability.

[rfassett]

I think what HHM is saying is that it would be BK fraud if you intentionally did this with the intent to have it discharged in BK. If you happened to have paid your fines with your credit cards without out the intention at the time to file BK, you would probably be OK. So much of fraud centers around intent. The action that you describe reaks with intent to defraud the creditor and to cheat the system. Probably not a good idea to promote such a plan.

[epiphany]

In my 2004 bankruptcy, of course old laws, I had included a card with a balance of over $5000, which was strictly traffic fines, leadfoot driving, rolling across stop signs, running red lights and of course parking tickets.
That CC outfit - Discovercard - never raised any objections to the dischargeability.

If you racked up 5K in traffic fines, and had a credit card soley dedicated to paying for them, you had bigger problems than BK, IMO.

How does one justify driving like that after the first ticket or three? Trying not to sound like the little goody two shoes that I'm not, but you sound really non-chalant about it. Running red lights? Scary.


ep

[biotechsolution]

There also might be another angle on the traffice fines issues.

Section 523(a)(7) deals with governmental fines. Penalties have to for an actual pecuniary loss to not be dischargeable. There was a case in Middle District of GA that dealt with fines associated with violations of the clean water act, they were ruled to not be actual pecuniary loss so they were dischargeable.

The actual traffice fine or parking ticket won't be dischargeable but if it is like most parking tickets, the $ per month that continue to tack you can argue isn't an actual pecuniary loss and should be dischargeable.

I helped a friend that had $2k of old parking tickets that had built up from a $30 fine. After his bk he received a collection letter from a CA hired out from the city. I sent a letter basically stating the above. He'd be happy to pay the original fine but any addition penalties would have been dischargeable. That was 10 months ago and he hasn't heard anything since. Now he doesn't have car or plates anymore so not sure how much it matters.

But if you dealing with months and years of added penalties it could be a good arguement.

[HAP]

If you racked up 5K in traffic fines, and had a credit card soley dedicated to paying for them, you had bigger problems than BK, IMO.

How does one justify driving like that after the first ticket or three? Trying not to sound like the little goody two shoes that I'm not, but you sound really non-chalant about it. Running red lights? Scary.

...No shite!

[danaf]

I'd hate to be anywhere on the road near the OP! Sorry but it's the truth. I totally concurr with epiph on this one. Totally scary!