Can I wipe out New Jersey motor vehicle surcharges in a bankruptcy?

A:

Simply put: yes and no.  Many people in New Jersey are struggling with the suspension of their driver's licenses because of an inability to pay surcharges levied by the New Jersey Motor Vehicle Commission.  This just creates a vicious financial cycle that can be difficult to get out of.  You cannot afford to pay the surcharges on your salary from your job, but then cannot drive to your job to earn the salary because your license has been suspended.  Unfortunately, you cannot just wipe out New Jersey motor vehicle surcharges in a chapter 7 bankruptcy.

Chapter 13 to the Rescue!

This is where chapter 13 comes in.  People making more in net pay than necessary to pay monthly expenses (i.e. people with disposable income) can propose a repayment plan that pays the surcharges over time (three to five years).  In the meantime, Motor Vehicle will restore your license after you pay a restoration fee.  In addition, the plan can deal with other debt payments (like credit cards) that may be interfering with your ability to pay the surcharges.  This is because you can make one affordable payment per month on all of your debt.  What's even better, you do not necessarily have to pay all of it back, just as much as you can afford as long as your plan meets the requirements of the bankruptcy code.

If you are in this situation, you should contact my office as soon as possible to discuss whether chapter 13 bankruptcy can get you back on your financial feet.

Have more questions about bankruptcy?  Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey.  It will give you the answers you need all in one place.  Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.