Seymour's Blog

 “Wipe Out Surcharges and Get Your License Back”

I have had a lot of clients come to me who have not had a valid New Jersey driver’s license. It has nothing to do with the fact that they have a bad driving record. It is strictly a matter of money.

Here is what I mean. In New Jersey, if you get convicted of certain violations, not only do you get Court fines and Court costs, you also get surcharges that are payable to the Motor Vehicle Commission.

If you don’t pay your surcharges, your license gets suspended and remains suspended until you either pay your surcharges in full or work out a monthly payment schedule that is acceptable to the Motor Vehicle Commission.

Here is something many people don’t know. You can pretty much totally wipe out your surcharges by doing either Chapter 7 or Chapter 13 bankruptcy.

The issue involving surcharges and bankruptcy came to a head in the mid 1990’s and early 2000’s. I fought many cases with representatives from the New Jersey State Attorney General’s Office who came to Bankruptcy Court and argued before the Trustees and the Judges that Motor Vehicle surcharges had to be paid, even if a person filed for bankruptcy.

The Attorney Generals came up with all sorts of legal arguments, some of which seemed to make a little bit of sense, and other arguments made very little sense whatsoever.

It took a long time for the issue to finally be decided. Here is the bottom line.

1) If you owe surcharges on your New Jersey driver’s license, those surcharges can generally be wiped out in a Chapter 7 or Chapter 13.

2) If your license has been suspended, and the only thing keeping you from getting your license now is your non-payment of surcharges, you can normally get your license back almost immediately after filing a Chapter 7 or Chapter 13.

3) In certain situations, before you can get your license back you will have to take and pass a driver’s examination. Taking the exam again is normally required if you have been suspended for three years or more.

4) You might have to pay a restoration fee, or some other additional charges, to the Motor Vehicle Commission.

I have had people with really high amounts of surcharges get them wiped out by filing a Chapter 7 or Chapter 13. To give you some examples, I have had people with surcharges of $20,000, $30,000, $40,000, or more. Those surcharges have been wiped out in Chapter 7 and Chapter 13 bankruptcies.

If you don’t have to take the driver’s examination again, you can normally go to the Regional Motor Vehicle Commission Office right after your bankruptcy has been filed, bring proof of your bankruptcy filing, and there is an excellent chance that you can get your license back even that same day. That certainly has happened for many of our clients.

I hope my readers can spread the word to others who think their situation is hopeless, because they can’t afford their surcharges. A Chapter 7 or Chapter 13 can wipe out all of those surcharges, help them get their license back, and also often wipe out all of their unsecured debts such as medical bills, credit card bills, personal loans, legal bills, dental and hospital bills, and even old income taxes.

Feel free to call me if you have any questions.