Chapter 13 and Court fines

[kansas13]

My attorney has been very vague about how I should handle this matter.

I had a traffic fine that went into my Chapter 13 to be paid 100.00% $1200.00.
While on probation for that offense I was not ordered to pay payments on
the fine as I was in bankruptcy. As per my probation officer I only had to
pay for fees assessed after the Ch 13 filing date i.e, UA's ($204.00). I paid
the $204.00 and was released from probation. A week later I got a letter
from the court giving me "Unsuccessful Completion" of probation for fee's not
paid and a bill for the original fine $1200.00 and if not paid my liscense was to be
suspended. I called the clerk and setup a payment arrangment and that seemed to
satisfy them not suspending my liscense but now i'm paying for the fine outside of
the bankruptcy and I have a worse record with failing probation. My attorney really
didn't have much to say other than the creditor shouldn't have contacted me. Is there
anything I can do about any of this?

[justbroke]

You should work with your attorney and ask what you can do. If your attorney doesn't understand the interplay with the Automatic Stay, ask them if they can quickly find out. The continuation of the collection of fines and penalties, even criminal, that were incurred prior to filing and for which the Chapter 13 is filed and are treated by the plan, may be a violation of the automatic stay. Even the IRS gets in trouble at times for this. My own local town got in trouble for attempting to collect some municipal tax that was pre-petition (before I filed).

If your court leverages the non-payment during the automatic stay to suspend your license, that is also likely a violation of the automatic stay to coerce you into paying. I really wish your attorney was more forthcoming with you.

If you are saying the fine is INSIDE The Chapter 13 Plan and the plan covers this fine 100%, I'm pretty sure this is a violation of the automatic stay and the lower Court (non-bankruptcy) would be in civil contempt. I would go back to my attorney and ask them to issue a warning letter that the automatic stay is violated because the fine is included in the Chapter 13 Plan.

At least that's my read.

Have your attorney read In Re Walters, 219 B.R. 520 (Bankr. W.D. Ark. 1998) or Walters v. Sherwood Municipal Court, 219 B.R. at 520. There are some other similar cases out there as well.

The Bankruptcy Code is clear that fines and restitution imposed in connection with a criminal judgment are nondischargeable, even in a Chapter 13 case. 11 U.S.C. § 1328(a)(3). The nondischargeability of the debt, however, does not in any manner obviate the effect or the imposition of the automatic stay.

(emphasis added is mine)
https://www.courtlistener.com/opinio...in-re-walters/