← Blog  ·  January 22, 2019

Chicago's program erases parking tickets after a Chapter 7 bankruptcy

Over the past several years, investigative reporting showed that Chicago's parking ticket system disproportionately punished Black and Hispanic communities. In response, the city amended its code so that, starting January 1, 2019, a person filing Chapter 7 bankruptcy can erase parking tickets that are at least 3 years old.

To be clear, bankruptcy law itself did not change — it's federal, and only Congress can change it. As always, a Chapter 7 by itself does not discharge parking ticket debt; traditionally you had to file Chapter 13 (which offers a "super-discharge") to cancel it, but Chapter 13 requires paying into a plan for 3 to 5 years.

What changed is that Chicago created a new program to help people in a Chapter 7. The idea: people who most needed a Chapter 7 were being forced into a Chapter 13 with payments they couldn't afford, then ending up right back where they started — ticket debt, suspended licenses, and booted or towed cars.

How does the program work?

1. File a Chapter 7 bankruptcy and receive your discharge.
2. Enter a payment plan with the city for tickets less than 3 years old, without late fees or penalties.
3. Complete that payment plan.

If you complete these steps, the city erases tickets more than 3 years old (from when the bankruptcy was filed) and removes late fees and penalties on all tickets, regardless of age.

The limit is that it only erases tickets older than 3 years. If you have a lot of recent tickets, a Chapter 13 may still be better — it comes down to dollars and cents. Don't file bankruptcy without first talking to an experienced attorney. Our consultations are always free.

This post is for general educational purposes only and is not legal advice. Every case is different. To discuss the details of your case, call us at (312) 588-9000.