Discharging NYC Parking Tickets with Bankruptcy – Why Only Chapter 13 Works

Introduction

Dealing with piles of NYC parking tickets can be stressful. Nobody wants booting, license suspensions, or unrelenting fines. The question that often comes up: can parking tickets be wiped out by filing for bankruptcy? At Midtown Bankruptcy, we’ve seen that these tickets can be addressed—but only in Chapter 13, not Chapter 7. Let’s dive into why this is the case and how drivers in NYC can get relief.

Why Chapter 7 Doesn’t Help with Parking Tickets

Government Fines Aren’t Dischargeable in Chapter 7

Under Section 523(a)(7) of the Bankruptcy Code, fines, penalties, or forfeitures payable to a governmental unit are non-dischargeable in Chapter 7   .  That includes NYC parking tickets, traffic tickets, and toll violations—they’re considered civil penalties owed to the city.

Limited Exceptions Don’t Apply in NYC

Some sources suggest that older parking tickets (over three years) may be discharged in Chapter 7.  However, this is not standard in New York, and NYC’s Department of Finance generally enforces even older violations strictly. Attempting Chapter 7 hoping to clear tickets could leave you with no relief and damaged expectations.

How Chapter 13 Offers a Real Solution

Repayment Plan Over 3–5 Years

Chapter 13 allows individuals with regular income to set up a court-approved repayment plan lasting 3 to 5 years.  During this period:

  • Non-dischargeable debts like parking tickets are paid over time, not in a lump sum.

  • Those who keep up with payments avoid license suspension and other penalties during the plan.

Potential for Discharge of Remaining Balances

At the end of the repayment plan, any outstanding balance on these civil penalties may be discharged if they fall under the category of “civil infractions” and aren’t criminal fines .

Avoiding License Suspension

New York law allows driver’s licenses to be reinstated during Chapter 13, even while the repayment plan is ongoing, provided payments remain current.

Step-by-Step: What You Should Do

  1. Get a Consultation
    A New York bankruptcy attorney helps evaluate your ticket burden and income.

  2. Choose Chapter 13 If Eligible
    Only Chapter 13 provides a framework to manage and repay non-dischargeable fines over time.

  3. File Bankruptcy and Start Repayment Plan
    Your plan will spread payment of parking tickets over 3–5 years.

  4. Protect Your License and Avoid Additional Penalties
    Staying current prevents suspension or driver’s license issues.

  5. Obtain Discharge on Remaining Balances
    After successful completion, any remaining civil penalties—like parking tickets—can be fully discharged, giving you breathing room and a fresh start.

Frequently Asked Questions (FAQs)

  1. Can I discharge NYC parking tickets in Chapter 7?
    No. Government fines, including parking tickets and tolls, aren’t dischargeable in Chapter 7 under federal law .

  2. Are there exceptions for very old tickets?
    Some laws suggest exceptions for 3+ year old tickets, but NYC doesn’t typically allow Chapter 7 discharge for them .

  3. How long do Chapter 13 plans last?
    Usually 3 to 5 years, based on income levels.

  4. Will completing Chapter 13 discharge all my parking tickets?
    Yes—if they’re considered civil penalties and you finish the repayment plan.

  5. Can I get my driver’s license back during Chapter 13?
    Absolutely. License reinstatement is possible as long as you’re complying with the plan Upsolve.

  6. What if I can’t complete the plan?
    You risk having the bankruptcy case dismissed, losing protection, and still owing the tickets.

Conclusion

NYC parking tickets can feel overwhelming—but bankruptcy offers a path forward. Chapter 7 won’t help, but Chapter 13 gives disciplined, court-supervised repayment over time. Complete the plan, and remaining balances on NYC parking tickets may finally disappear. Need help navigating the process? Contact us at Midtown Bankruptcy for a free consultation. Let’s pave your way to a fresh start.

Images to Accompany the Article

  1. Explains how parking tickets can be dissolvedNYC parking ticket close-up – illustrates what readers might recognize on their windshield.

  2. Car parked with expired ticket – emphasizes urgency and real-world context.

  3. Sample notice of violation – highlights official language.

  4. Stack of parking tickets – visually represents mounting financial pressure.

If you’re drowning in NYC parking tickets and wondering if bankruptcy can help, don’t wait. Call The Law Office of William Waldner today at (212) 380-1101 for a free, confidential consultation. We’ll explain your options, help you understand if Chapter 13 is right for you, and guide you every step of the way toward financial relief. Your fresh start begins with one phone call.

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