Can Bankruptcy Clear Parking Tickets, Tolls, and Traffic Fines?

 Posted on September 05, 2025 in Consumer Bankruptcy

For drivers in Maryland and D.C., unpaid parking tickets, traffic fines, and toll violations may accumulate faster than they can be paid. Beyond the frustration of these costs, debts like this can lead to wage garnishments, vehicle towing, and even driver’s license suspensions. An individual who is considering filing for bankruptcy to achieve a fresh financial start may wonder whether these debts can be discharged through bankruptcy.

The answer to that question is more complex than it seems and depends on the type of violation, the chapter of bankruptcy filed, and how the courts treat government-related debts. Speaking to a knowledgeable Charles County, MD consumer bankruptcy attorney can help you decide whether bankruptcy is right for you, and, if so, which type of bankruptcy you should file.

How the Federal Bankruptcy Rule Affects Government Fines

Under 11.U.S.C.Section 523(a)(7), government fines and penalties are generally nondischargeable under Chapter 7. This includes parking tickets, moving-violation fines, and the penalty portion of toll violations. Chapter 13 bankruptcy is different: once you have completed your repayment plan, Chapter 13 discharge does not exclude these debts, meaning fines and penalties can be wiped out.  

Specifically, in D.C., parking and traffic camera tickets are considered civil penalties, meaning they will survive a Chapter 7 discharge, and the same is true in Maryland. Following the Chapter 7 discharge, collection efforts can resume. Through Chapter 13, these parking and traffic camera tickets can be repaid through the repayment plan, and any remaining balance upon completion can be discharged.

Can Bankruptcy Clear Tolls and Toll Penalties in Washington, D.C., and Maryland?

Base tolls are considered compensatory, rather than penalties, as they compensate for the use of roads and bridges; therefore, they are often treated as unsecured debt in bankruptcy. Any civil penalties or late fees on tolls are considered penalties. DMV holds, boots, and impounds may require a case-by-case evaluation.

Chapter 7 will wipe out all base tolls owed, but not the penalty add-ons. Under Chapter 13, base tolls and penalties will be included in the repayment plan, and any amount left unpaid at the end of the repayment plan can be discharged. Maryland adds a $25 civil penalty per unpaid video-toll citation, which is separate from the toll and is considered a penalty.

What Can the Automatic Stay Do for Tolls, Tickets, and Traffic Fines?

Collection efforts are usually halted once bankruptcy is filed and the automatic stay takes effect. Although the government is allowed to continue enforcing laws (i.e., issuing new tickets), collections on prior tickets, tolls, and traffic fines are, at least momentarily, halted.

Strategies for Maryland and D.C. Drivers

Maryland allows registration flags and license suspensions for unpaid video tolls, but occasionally runs civil penalty waiver programs to encourage drivers to pay base tolls. D.C. aggressively boots and tows for older unpaid tickets. Drivers should inventory their debt, separating base tolls from penalties, and tickets from other debts.

While short-term relief is available once bankruptcy is filed, it will be necessary to have a plan in place to pay these debts after the Chapter 7 discharge. Individuals with a substantial number of tickets and penalties should consider Chapter 13, as it typically yields the most favorable outcome. Those who primarily have credit card and medical debt, with only a minor amount of tickets and penalties, might benefit more from Chapter 7 bankruptcy.

Contact a Prince George’s County, MD Personal Bankruptcy Attorney

If you feel as though you are drowning in tickets and tolls, a tailored bankruptcy strategy can stop collections and help you get back on the road (legally). A Charles County, MD bankruptcy lawyer from Bloc One Services, LLC is ready to explain your options and map out a plan that fits your budget and your future. Attorney Blocton offers the community high-quality legal services at a fair and reasonable price. "Rebuild Your Future with Hope." Call 240-200-0076 for a free 30-minute initial consultation.