As a bankruptcy lawyer, there are always niche topics that I need to understand to give proper advice to clients. One such area is toll fines and violations, which can cause significant consequences if improperly handled.
This blog post will explore the implications of unpaid tolls and why they are unsecured debts. The information in this post relates to tolls from The New Jersey Turnpike Authority, Thruway Authority, New York E-Zpass, and Maryland Transportation Authority.
In addition, we’ll delve into how the bankruptcy code treats unpaid toll fines when individuals face financial hardship. We will also look at what happens when referring delinquent accounts to a collection agency for recovery.
This post will examine some unintended consequences that arise from poor customer service practices by toll facilities that may lead to more unpaid tolls or even bankruptcy filings among customers who feel unfairly targeted or mistreated.
By the end of this post, you’ll gain a comprehensive understanding of everything related to toll fines and violations as unsecured debts with real-world examples from various states across America. So let’s dive right in!
Understanding E-ZPass Tolls and Bankruptcy
E-ZPass tolls are an electronic payment system many drivers use to pay for highway and bridge tolls. This type of toll can be discharged in a Chapter 13 bankruptcy, allowing the debtor to avoid having their wages garnished or other collection action taken against them.
Some attorneys feel that E-ZPass tolls are dischargeable in Chapter 7. This is incorrect, and if someone receives a Chapter 7 discharge, they are stuck with the tolls for eight years. One case that discusses this issue is Bace v. Babbit, 11 Civ. 6065 (PAC) (HBP (S.D.N.Y. Jul 3, 2012).
Under 11 USC section 523(a)(7), E-ZPass and similar tolls are not dischargeable under Chapter 7 Bankruptcy. 11 USC section 1328(a) allows the discharge of several debts that are not dischargeable in Chapter 7, including E-ZPass and other fines and tolls. Because Chapter 13 offers a discharge of things not allowed in Chapter 7, the Chapter 13 discharge is often called a “super discharge. “
The advantages of discharging E-ZPass tolls in a Chapter 13 bankruptcy include avoiding potential wage garnishment or other collection actions from creditors who may have placed liens on the debtor’s property because of unpE-ZPasspass fees. The automatic stay can undo the suspension if your registration has been suspended because of E-ZPass fines or tolls. The automatic stay is in effect the second your Chapter 13 case is filed. Assuming the registration is only suspended for these fines or fees (not for something else like lack of insurance), the suspension must be lifted the second Chapter 13 is filed.
An experienced consumer bankruptcy attorney can provide invaluable guidance to debtors looking to file for bankruptcy and discharge E-ZPass tolls. They’ll also ensure the debtor understands their rights throughout the process so they don’t get taken advantage of when dealing with collection agencies on unpaid balances.
Understanding E-ZPass Tolls and bankruptcy is essential in managing financial obligations during bankruptcy. By understanding the advantages of discharging E-ZPass tolls, you can better prepare yourself for a successful outcome with your case.
Key Takeaway: An experienced consumer bankruptcy attorney can be a lifesaver for debtors seeking to file for Chapter 13 and discharge E-ZPass tolls. They will make sure all paperwork is in order, including lien releases and proof of payment confirmation letters, while also educating the debtor on their rights throughout the process–so they don’t get taken to the cleaners later.
Advantages of Discharging E-ZPass Tolls in Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy is an effective way to discharge E-Zpass tolls and protect your finances from the debt burden. Almost all unsecured debts are removed when you file for Chapter 13 bankruptcy, including E-ZPass tolls. Student loans are an exception and not discharged automatically. Filing for bankruptcy can offer a reprieve from unpaid E-ZPass tolls, wiping the slate clean and providing a fresh start.
One of the most significant advantages of discharging E-ZPass tolls in Chapter 13 bankruptcy is that it can help prevent wage garnishment and other collection activities. If you owe money on your E-ZPass account, creditors may try to collect it by garnishing wages or placing liens against property such as a car or home. Filing for Chapter 13 bankruptcy prevents these actions from taking place.
Another advantage of discharging E-ZPass tolls in Chapter 13 bankruptcy is that it helps reduce stress and worry about how you will pay off your debt. This provides peace of mind knowing that there’s one less bill hanging over your head each month, which can provide much-needed financial relief during difficult times like these.
Filing for bankruptcy can effectively discharge E-Zpass tolls, allowing individuals to save money and avoid potential legal action. Still, it is critical to grasp the filing process to gain the most out of bankruptcy.
Key Takeaway: Filing for Chapter 13 bankruptcy effectively wipes out E-ZPass tolls, preventing creditors from collecting and saving money on taxes. Chapter 7 Bankruptcy will not discharge E-ZPass tolls.
In conclusion, it is possible to discharge E-ZPass tolls in bankruptcy. Chapter 7 and 13 consumer bankruptcy attorneys can help you understand the advantages of discharging these debts and how to file for bankruptcy so that your E-ZPass tolls can be discharged. Not all debtors will qualify for this type of relief; consulting with an experienced Chapter 7 or 13 consumer bankruptcy attorney can help determine if you’re eligible.
If you are struggling with the financial burden of E-ZPass tolls and considering bankruptcy, contact William Waldner today for experienced legal guidance. He can provide personalized solutions to help you get back on track financially.