Understanding Chicago Parking Fine Debt Options?

February 26, 2019 11:43 AM

I'm trying to help someone with their parking fine debts, so they can get a driver's license. Any advice would be appreciated. One avenue of exploration is DebtStoppers.

I have a worker who is very skilled, but doesn't have a license. As a result, he's poor and there's very little work for him. I would like to help him, if I can, but I feel out of my depth.

When he was younger, and irresponsible, he somehow managed to rack up $8000 worth of parking fines. I know that sounds insane, but there are extenuating circumstances. Also, he's poor, grew up in the projects in Chicago's South Side, and life's been hard. It seems like if he could just get a driver's license, he could turn things around. I would like to see... something positive happen in the universe.

His Options:
A: He can make a down payment of $1700 and then be put on a payment plan of $175 of month for 36 months through the company holding his debt.

B: He can file for Chapter 13 bankruptcy, make a legal payment of $350, and be put on a payment plan of $125 a month for 36 months through DebtStoppers.

Know that parking fine debt cannot be negotiated in Illinois. Declaring bankruptcy alone will not erase his parking debts in Illinois. He must file Chapter 13. Option A really looks like the best deal I can arrange through the company holding his debt.

Questions:
What are the trade-offs involved in filing for Chapter 13 bankruptcy? Anyone have experience with DebtStoppers? Are they for real? Are they charging for services I can perform myself? Any other advice?

I know you are not my lawyer. Any advice is very much appreciated!

posted by xammerboy to Law & Government (7 answers total)

Some of the information on the Illinois DMV website about being able to request a hearing to reinstate a suspended license and the discussion of the Restricted Driving Permit procedures makes me wonder if there is another option available due to the extenuating circumstances.

The Chicago Volunteer Legal Service may be able to find pro bono representation to help with this, because a driver's license is so important and extentuating circumstances can sometimes support exceptions within otherwise draconian systems.

In addition, LAF (formerly the Legal Assistance Foundation) provides free civil legal services to people living in poverty in Cook County, including for bankruptcy, and they may also be able to offer advice and assistance.
posted by Little Dawn at 12:04 PM on February 26, 2019

does chicago have an amnesty program? a quick google shows that a few towns in illinois do, for settling debts for certain percentages off.
posted by koroshiya at 12:05 PM on February 26, 2019

I don't know anything about Illinois, but I work with state government in NY. No guarantees that this would work, but in your shoes I would call the DMV and do whatever you can by being high-social-capital/moderately pushy to talk to someone who's a level or two up from the initial phone-answering person, and then lay out the sob story and ask if there's anything the DMV can do for him. (E.g., in NY there's a category of 'restricted license' that he might be eligible for -- allowed to drive only back and forth to work, but not recreationally.)
posted by LizardBreath at 12:20 PM on February 26, 2019

Thanks for the suggestions so far. These are helpful!

- We have tried calling CVLS, but they don't work on parking fine cases.
- We've tried the DMV.
- We have tried negotiating tactics. They claim they legally can't negotiate the debt further.

But we haven't tried calling LAF. If they handle parking fee cases, that could be really helpful. I feel like there must be an alternative to DebtStoppers. The name alone, and the fact that they advertise on late night T.V. makes me suspect they are predatory. I would really like other options!
posted by xammerboy at 1:03 PM on February 26, 2019

Everyone giving advice as though this is some normal city snafu--it's not. Chicago has been preying on its population of poor people and people of color for years with an extraordinarily aggressive ticketing scheme only now being challenged.

OP, I don't understand why you would couple Chapter 13 with any sort of sleazy debt-relief organization. The idea of Chapter 13 would be to establish a repayment plan with the court. I don't know anything about "Debtstoppers" in particular but, I mean, come on. Mefi, I implore you, stop talking to companies with names like "Debtstoppers."

Please read this ProPublica article (really, the whole sequence of articles) before rejecting the idea of bankruptcy, as it seems that recent changes may allow the filing of Chapter 7 to eliminate city ticket debt. It looks like Legal Assistance Foundation is definitely focused on these issues, so I think you should call them.
posted by praemunire at 1:36 PM on February 26, 2019

Some of my confusion with the IL DMV process may be due to how that website wasn't the official one, although the official one doesn't seem particularly helpful, either - but to follow up on the Restricted Driving Permit in Illinois, this blog claims to be written by an attorney:

How do I get a Restricted Driving Permit (RDP)? An application for a restricted driving permit may be made through an informal hearing or through a written request for a formal hearing. [...] Requirements depend on the type of restricted driving permit for which you have been approved: Employment, Educational, or Medical. Once approved, you will need to:

1. File proof of Financial Responsibility Insurance

2. Take the driver's license examination at a facility.

3. Have an employer complete an Employment Verification (Educational Verification, medical affidavit, AA/Support Recovery affidavit).

4. Pay an $8 fee for the RDP.

* Note: If suspended (vs. revoked), items 1 and 2 may not be necessary.

I added emphasis above because it sounds like the Employment Verification could happen, and perhaps address some of the barriers related to the driver's license. A consultation with an attorney who is familiar with the process could help determine whether and how this procedure may apply.

And fwiw, Debtstoppers appears to be a law firm, and a HuffPo contributor offers a profile.
posted by Little Dawn at 1:48 PM on February 26, 2019

I could be wrong, you need an IL lawyer to discuss this with you (IANAIL nor YL), but it appears to me from a quick check that a restricted driving permit is available only for people who lost their licenses as a result of some sort of conviction (presumably, usually DUIs) and is not available for people whose licenses are suspended for failure to pay parking tickets.
posted by praemunire at 3:36 PM on February 26, 2019