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Bankruptcy Book by

PETER FRANCIS GERACI

  
Chapter #34
NSF Checks, Traffic & Parking Tickets

These debts should be listed on any bankruptcy petition. It is sometimes a criminal offense to write a check without having funds in the account first. Usually, a bankruptcy will get rid of the debt for the bad check, but if you have already been charged with a crime, I cannot get the criminal case dismissed. Also, if the creditor wants to make an issue of it, the dischargeability of the bad check debt can be contested. I rarely see this happen, though, in the case of small consumer bad checks, so probably you can clear up this problem with a bankruptcy.

Traffic fines and parking tickets are fines of governmental units. The Bankruptcy Code says that these are not discharged in Chapter 7 or 13. However, we always list parking tickets on your Chapter 7 bankruptcy petition, and give you a copy of the schedule so that you can take it to the parking ticket bureau. I have found that some cities will wipe out the tickets and recall warrants if you bring in bankruptcy papers. Most times, they will at least work out a payment plan for you.

In a Chapter 13 Debt Repayment Plan, we schedule parking tickets as priority claims to be paid in full, and schedule NSF checks just like regular unsecured debts, and cure your parking ticket problem


Problem: Karen bounced four checks when a check someone wrote to her bounced. She has $14,000 outstanding in charge card debt, and had to catch up her car payment instead of redeeming the bounced checks.

The Peter Francis Geraci Chapter 7 or 13 Solution: She can file a Chapter 7, and most likely will have no debt left except her car payment, unless she bounced the checks deliberatly. She can also pay all debt using chapter 13, for the same or $100 more than her car payment is right now.