Bankruptcy Lawyer Explains How New Jersey EZ Pass Violations And The Threat Of Registration Suspension and Auto Impoundment is Handled in Bankruptcy.
New Jersey residents may not realize that relatively minor EZ Pass violations may result in an enormous debt after the New Jersey Turnpike Authority adds their collection fees and costs. I have handled bankruptcy cases, wherein about 92% of the EZ Pass debt represents collection costs and fees. For example, a client’s total debt of $15,500, represents violation fines of $1,240.00 and collection costs of $14,260.00. Unfortunately, the Turnpike Authority does not treat the actual fines differently from the collection fees and costs.
The Turnpike Authority may send unnerving letters advising that if the debt is not paid, they will suspend your registration and impound all of your vehicles. The letters may provide payment options that are financially unfeasible . What can you do, as you need your auto for work and to transport your children, etc? Bankruptcy may be an option.
Immediately upon the filing of any bankruptcy case, the New Jersey Turnpike Authority must immediately cease any and all collection efforts. This means that if a bankruptcy case is filed, there is an automatic stay that prevents the debtor’s registration suspension and vehicle impoundment. If the registration was suspended prior to the bankruptcy filing, the turnpike authority must reinstate the registration, after the filing. However, the turnpike authority may charge reasonable fees and costs associated with the reinstatement.
The EZ Pass debt may be eliminated and is “dischargeable” in a chapter 7 bankruptcy case. Such debt is also “dischargeable” in a chapter 13 case. This means that the debtor need not pay any of the debt, in the event that either the debtor has no ability to pay any portion, and/or has no valuable assets that are not completely exempt.
You may contact Robert Manchel, at 866 503 5644, to discuss how bankruptcy will effect your EZ Pass violations.