Can I discharge my court fines in a Chapter 7 Bankruptcy?
The general rule is that court fines cannot be discharged in a Chapter 7 bankruptcy if they are owed to a governmental unit, are for the benefit of that unit, and are punitive rather than compensatory.The term “government unit” usually refers to a court or municipality, but has also been held to include other government units such as a federal credit union.Second, the fine has to be for the benefit of the government unit, not a party to a case. So if you owe your fine to a person, say a victim of a crime you committed, then the fine isn’t for the benefit of the court and so is dischargeable.Third, if the fine was levied against you as a punishment, it isn’t dischargeable, but if it was compensatory, then it is dischargeable. In practice, this means that parking tickets, speeding tickets and criminal fines can’t be discharged because they are meant to be a punishment. Likewise, fines and penalties resulting from a DUI can never be discharged. However, if you owe a fine to compensate someone for pecuniary loss that you caused that debt is dischargeable.