Bankruptcy Stay – 11 U.S.C. § 362
Filing Chapter 7 or Chapter 13 bankruptcy triggers an automatic stay under 11 U.S.C. § 362 that halts collection of most parking fines and toll debts. Parking and toll obligations may be dischargeable in Chapter 7 (subject to § 523(a)(7) carve-out for fines payable for the benefit of a governmental unit, which is fact-specific) and are routinely included in Chapter 13 plans. In Texas, courts have held that civil parking penalties (Ch. 682) are dischargeable as ordinary debts; Class C criminal fines may be excepted from discharge.
Legal basis
11 U.S.C. §§ 362, 523(a)(7), 1322; In re Watson, 192 B.R. 739 (Bankr. S.D. Tex.)
Sample appeal wording
NOTICE OF AUTOMATIC STAY TO: [CITY/TOLLING AUTHORITY] Collections Department On [DATE], debtor [NAME] filed a petition for relief under Chapter [7/13] of the Bankruptcy Code, Case No. [NUMBER], U.S. Bankruptcy Court, [DISTRICT] of Texas. Pursuant to 11 U.S.C. § 362, an automatic stay is in effect. All collection activity, registration holds, OmniBase reporting, and payment demands related to citations [LIST] must cease immediately. Continued action constitutes contempt under § 362(k).
Replace [PARKING DATE], [NtK DATE] etc. with your own dates before sending.
Beat It writes this argument automatically
Scan your PCN — our AI checks if this ground applies to your specific ticket, drafts a properly-cited appeal letter, and submits it to the council on your behalf. Only pay if you win.
Scan my ticketSources
- 11 U.S.C. §§ 362, 523, 1322
- Bankr. S.D. Tex. and N.D. Tex. case law