Traffic tickets and license suspension for unpaid tickets pose a significant problem for many Michigan residents. Bankruptcy offers a solution. There are two types of bankruptcy Chapter 7 and Chapter 13. In Chapter 7 traffic tickets are not dischargeable however driver’s responsibility fees are dischargeable. Chapter 7 can help a person who has significant other debts which are dischargeable concentrate on their debs which are not i.e. traffic tickets. Chapter 13 can help a person with significant traffic tickets.
A Chapter 13 is a repayment plan wherein a person consolidates their bills and pays them back over a 3 to 5 year period. Traffic tickets such as speeding tickets, parking tickets etc are dischargeable under Chapter 13 but not in Chapter 7. Misdemeanors or felonies such as drunk driving are not dischargeable under Chapter 13, however the fines associated with them can be included in the repayment plan. Most importantly if a person’s license has been suspended for traffic tickets a Chapter 13 can quickly allow a person to reinstate their license with the Secretary of State without paying the fine. This can usually be accomplished within 10 days of filing the case.
Another issue resulting in license suspension is financial responsibility obligations due to an accident in which the driver failed to have insurance. The State frequently will suspend a license in these cases. Both Chapter 7 and Chapter 13 can resolve this issue since this type of debt is dischargeable in bankruptcy.