Brake Grinding Noise problems of the 2005 Toyota Scion Tc

I was on my way to work when the vehicle in front of me came to a complete stop. I was approx. Three car lengths behind her (which is plenty of distance at 25mph) when I applied my brakes though nothing happened. They made a grinding noise (like the pads were gone, but they are new ceramic pads). I ended up hitting the vehicle in front of me. I got a citation for following to close, which is $260. 00, my insurance was increased by over $100. 00 a month, I had to pay for her car plus $3750. 00 of damage on mine. She didn't have insurance and was driving on a suspended license. When I told the officer what had happened with my car he just looked at me as if I was stupid. This is a major problem that is and has cost people a lot of money, not to mention being without a vehicle.