Are E-ZPass Penalties Excessive—and Can Bankruptcy Help?

If you’re facing thousands of dollars in E-ZPass penalties for missed tolls in New York, you’re not alone. A single unpaid toll can trigger a $50–$100 violation fee, and if you miss several, the total can become overwhelming fast. These fees feel excessive—but are they legal? Can you challenge them? And can bankruptcy help?

Here’s what you need to know.

💸 How E-ZPass Penalties Work

When you drive through a toll without payment (due to a lapsed E-ZPass, an incorrect plate, or billing issue), the tolling authority may issue a violation notice. While the underlying toll may be $2–$6, the penalty can be $50 or more per occurrence. If left unresolved, they can quickly escalate into thousands of dollars.

⚖️ Can You Fight E-ZPass Fines in Court?

Many have tried to challenge these fees under the Excessive Fines Clause of the Eighth Amendment. However, courts have consistently rejected these challenges. They reason that E-ZPass penalties serve an administrative or deterrent function and are not criminal in nature—so they do not violate constitutional protections.

📚 In Kettle v. NYS Thruway Authority, the court upheld $100 penalties on $1.50 tolls, ruling that these were not unconstitutionally excessive.
📚 In Morgulis v. Bus Patrol America, a due process claim was dismissed, with the court finding the administrative process for contesting tolls sufficient.

So while the fines may feel unfair, courts have generally not been sympathetic to constitutional challenges.

🚫 Why Chapter 7 Bankruptcy Won’t Wipe Out E-ZPass Penalties

Here’s where many people get surprised: E-ZPass penalties cannot be discharged in Chapter 7 bankruptcy.

Under 11 U.S.C. § 523(a)(7), any debt that is:

  • A fine, penalty, or forfeiture

  • Payable to a governmental unit

  • Not compensation for actual pecuniary loss

is non-dischargeable in Chapter 7.

In other words, if the penalty is purely punitive—like a $50 charge for a missed $2 toll—it stays with you even after bankruptcy. Courts across jurisdictions, including in the 2nd Circuit (which covers New York), have upheld this interpretation in cases like Bace v. Babitt and CFTC v. Glenn.

✅ Chapter 13: A Way Out

If Chapter 7 won’t help, is there any way to get rid of these penalties?

Yes—in Chapter 13. The discharge provision in 11 U.S.C. § 1328(a) for Chapter 13 does not include § 523(a)(7) among the exceptions (except in hardship discharges under § 1328(b)).

That means:

  • If you complete your Chapter 13 repayment plan,

  • And your plan treats the E-ZPass penalties like general unsecured debts,

  • Those penalties can be discharged at the end of the case.

This distinction is critical. Unlike Chapter 7 (which uses § 727), Chapter 13’s broader discharge opens the door to eliminating civil fines and penalties, including toll violations.

🧾 Real Example

Suppose you owe:

  • $250 in actual tolls

  • $9,750 in E-ZPass penalties

In Chapter 7, only the $250 might be dischargeable (if even that); the rest remains owed.

In Chapter 13, after a 3–5 year plan, you might pay just 10–20% of the total penalties—and the rest can be fully wiped out.

🛑 Final Thoughts

E-ZPass penalties are burdensome, and unfortunately, the law is not on your side in Chapter 7 bankruptcy. But that doesn’t mean you’re stuck.

If you’re dealing with:

  • Threats of license suspension

  • DMV registration holds

  • Lawsuits for unpaid tolls or penalties

…it’s time to consider your options under Chapter 13.

📞 Talk to a Bankruptcy Attorney Today

At the Law Office of William Waldner, we’ve helped hundreds of clients resolve excessive toll and E-ZPass penalties using Chapter 13 bankruptcy. We’ll help you determine the best legal route—and if Chapter 13 makes sense, we’ll structure a plan that gives you real relief.

📅 Schedule your free consultation today at www.midtownbankruptcy.com

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