Chicago Parking Tickets and Chapter 7 Bankruptcy
November 4, 2022
RED LIGHT AND CAMERA TICKETS
Can Chicago Parking tickets be eliminated in Chapter 7? Yes, based on conditions.
PREFACE: As general rule parking tickets and debts to the Illinois Tollway Authority cannot be discharged in Chapter 7. However, the City of Chicago has carved out an exception.
The City of Chicago will waive or eliminate certain tickets based on Conditions.
What are the conditions?
- You file Chapter 7 and receive a Discharge.
- Tickets are divided by Age: tickets older than 3 years on the date of filing and tickets that are younger than 3 years: Old tickets and young tickets.
- The amount owed on the young tickets goes back to the original amounts. Where a $60 ticket doubles to $120 it goes back to $60. So you may owe (for example) $3,000 but you have to deal with a lesser amount: maybe as low as $1,500.
- The young tickets have to be paid.
- The city gives you up to 3 years to repay the new amount for the young tickets. Payments can be as low as $25 per month.
- If you receive any ticket during the period of repayment of the young tickets you must immediately pay it.
If you meet these conditions the old tickets are waived or eliminated. This is then the same as a discharge.
What if I fall behind on the payment plan for the young tickets? The city allows you to fall behind no more than 2 times; not 3 times.
What if I can’t meet the conditions such as not repaying the young tickets or get new tickets and don’t pay them? YOU DON’T GET THE WAIVER.
If the repayment is too difficult for you or you are not eligible for Chapter 7 then consider filing Chapter 13. Most of our Chapter 13 “ticket” cases pay a small dividend: usually around 10%.