In general, debt that is owed to NJ E-ZPass is considered and treated as unsecured debt in bankruptcy. Unsecured debt is debt that is owed to a creditor that is not holding a lien on any property, such as credit card or personal loan debt.
This means that a person who is entitled to a chapter 7 discharge, could discharge (eliminate) this debt. E-ZPass debt is treated as unsecured debt in a chapter 13, which means that any unsecured debt that is not required to be paid under the bankruptcy code, is eliminated and discharged.
I have never experienced any difficulty in discharging E-ZPass debt. However, debt that is obtained through fraud may not be discharged. Therefore, theoretically, if E-ZPass successfully contested a discharge as a result of fraud, the debt would not be discharged and would continue to be due and owing at the completion of the case. In other words, if E-ZPass proves, in court, that the debtor incurred the toll charge with no intention of ever paying the toll, the charge would not be discharged. Please note that I have never heard of E-ZPass contesting a discharge. Also, the cost of pursuing such an action, would likely deter the action altogether.
Robert Manchel is a New Jersey bankruptcy lawyer, who may be contacted at (866) 503-5655.