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Motor Vehicle Violations and Fines in Bankruptcy

Typically, State and/or municipal traffic fines are not dischargeable in bankruptcy. Therefore, in a Chapter 7, a discharge will not eliminate the debtor’s obligation to pay the fines.

Chapter 13

Under all circumstances, the fine must be paid and is not dischargeable. The New Jersey municipality that levies the fine decides whether the debtor may pay the fine through the bankruptcy plan. If the Municipality consents, the debtor may pay the fine through the monthly chapter 13 bankruptcy plan. If the municipality does not consent, the debtor must pay the fine directly to the municipality pursuant to their terms.

A bankruptcy filing will not eliminate or modify any non-monetary sanctions issued by the State of New Jersey and/or town or municipality, with one exception. In other words, if the State of New Jersey, municipality, county or town orders a license suspended for a certain time period, the bankruptcy court does not have the ability to modify such an order.

NJ Bankruptcy Lawyers

For more information about traffic violations or fines as they relate to your bankrupty case, contact the experienced New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel. We are available via our online contact form or call us at 866.503.5655 for a free consultation.