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Fines and Penalties in Chap 7
_Fact pattern_: I recently spoke with a possible client who has $30,000
of debt. Of this, the overwhelming majority of this debt is a debt owed
to a local governmental unit . It started out as a $100 violation for
driving the local OC toll roads. She didn't get notice. It turned into
$300, then $500 and, years later, is now capped at $25,000. Suddenly,
they are able to find her and give her a summons, even though she's
always had a forwarding address, etc.
_Issue_: Does 11 USC 523(a)(7) preclude penalties that increase the
original fine 250x from being discharged in a Chap 7 bankruptcy?
_Case law_: It seems that the Supreme Court has spoken on the issue in
/Kelly v. Robinson/, but lots of cases seem to distinguish. I have
nothing on point in the 9th Circuit, though (/In re Taggart/ is
relatively close regarding attorney discipline). Back east, I found a
case that says parking fines are not dischargable, but the surcharge
imposed by their DMV is. Same thing regarding the insurance surcharge
put on top of a traffic violation.
Does anyone have an insight or experience here? Thanks in advance.
Hale Andrew Antico
Attorney at law
(800) 227-2947
http://LosAngelesBankruptcy.net
The post was migrated from Yahoo.