Discharging Traffic Fines in New Jersey's Bankruptcy Courts
In New Jersey, if you do not pay your traffic fines, the Municipal Court and the Division of Motor Vehicles may suspend your driver's license. If you are caught driving while your license is suspended, there are serious consequences such as a longer suspension and more traffic fines.
Once a Chapter 13 bankruptcy case is filed, the license must be restored if previously suspended for failure to pay traffic fines. You must complete your Chapter 13 Bankruptcy case and receive a discharge. If you do not, you may still owe the fines. You risk another attempt to suspend your driver's license for non-payment.
New Jersey Bankruptcy Judges can order licenses restored once a case is filed under Chapter 13 if you have unpaid traffic fines. Fines discharged in Chapter 13 Bankruptcy cases may not need to be paid in full.
Fines are not discharged in a Chapter 7 case. This is because (1) the Bankruptcy Code creates an exception for individuals filing Chapter 13 cases and (2) because Chapter 13 cases involve a repayment plan for your debts. If you need to file a Chapter 7, your attorney can help you make payment arrangements with the Municipal Courts.
Chapter 13 cases are cases for individuals or couples with regular sources of income or the ability to pay creditors monthly payments. A potential Chapter 13 case filer must comply with certain other requirements.
If your license suspension for non-payment of fines is preventing from getting back your financial future, getting a good job or supporting your family, and you want to know more, give me a call today at 908 782 9333. Our first consultation is free.