As a Bankruptcy Attorney I have a tremendous amount of experience discharging MTA Tolls. In this blog post, we will delve into the consequences that arise from not paying your MTA toll bills and how it impacts both drivers and the overall functioning of our transportation infrastructure.
We’ll explore why unpaid tolls are such a significant issue for federal funding as well as examine some common misconceptions surrounding them. Failing to pay your MTA bridge or tunnel tolls — billed by MTA Bridges and Tunnels, formally the Triborough Bridge and Tunnel Authority (TBTA), which operates crossings like the RFK/Triborough, Verrazzano, Throgs Neck, and Whitestone — can incur hefty fines and penalties, so understanding the implications is essential for making informed decisions about driving habits.
Understanding MTA Tolls and Bankruptcy
The MTA, the nation’s largest public transit system, carries a responsibility to its users to pay their fares and fines or face substantial debt. Riders of the MTA must pay their tolls and fines, otherwise accruing debt can quickly become unmanageable and may require filing for bankruptcy. For many, the costs of unmet tolls can quickly become exorbitant, resulting in a hefty financial strain that is often too much to bear. Bankruptcy may offer relief for those struggling financially due solely because of these types’ specific kinds-of-unsecured-debt obligations.
When considering bankruptcy as an option, there are two primary chapters: Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, certain debts are discharged or forgiven by the court; however, not all debt is dischargeable in this type of filing. The unpaid tolls themselves ARE dischargeable under this chapter—they are ordinary unsecured debt owed for using the bridge or tunnel, no different from a credit card balance. What generally survives a Chapter 7 discharge are the violation fines and penalties stacked on top of the tolls, because fines and penalties owed to a governmental unit are excepted from discharge under 11 U.S.C. § 523(a)(7).
In contrast, Chapter 13 bankruptcy offers even broader relief: its discharge also wipes out most governmental fines and penalties—like E-ZPass violation fees and toll penalties—that would survive a Chapter 7. This type of filing allows individuals to set up a repayment plan that meets their budget needs while still allowing them some breathing room during difficult times such as job loss or medical bills piling up too high for one paycheck alone to cover it all at once.
Finally, if you find yourself in over your head with mounting bills related to MTA travel expenses – don’t panic. There are options available that can help ease the financial burden brought about by unpaid tolls and fines while keeping your finances afloat during tough times ahead.
It is important to understand the implications of MTA tolls on a bankruptcy filing in order to make an informed decision. Knowing the contrasts between Chapter 7 and 13 with regards to release of toll debt is essential for making an informed bankruptcy decision.
Dischargeability of Toll Debt in Chapter 7 vs Chapter 13
When it comes to discharging toll debt through bankruptcy, there are key differences between chapter seven and chapter thirteen filings. Unpaid MTA-related bills such as E-ZPass fines and toll debts are considered unsecured debt in both chapters. The tolls themselves are dischargeable in either chapter; the real difference between the two is what happens to the fines and penalties added on top. And do not underestimate that difference: the tolls themselves are usually nominal — often just $5 or $15 per crossing — while the fines and penalties can be astronomical. I had one client who owed more than $77,000 in total to the tolling authorities, and less than $5,000 of it was actual tolls. Everything else was fines and penalties.
In Chapter 7 bankruptcy, the unpaid tolls are discharged but the governmental violation penalties generally are not; in a Chapter 13 filing both are discharged, though the plan may pay back a small portion of the tolls and fines depending on your budget. Next, we’ll look into the financial implications of traffic violations.
How Bankruptcy Can Help With Unpaid Tolls
Filing for bankruptcy can be a great way to get relief from unpaid toll bills. If you have been having difficulty managing debts related to transportation authorities such as NY Transit Authority, filing for bankruptcy could be a way out. In this article, we’ll explore how both Chapter 7 and Chapter 13 bankruptcies can help discharge some or all of your outstanding debts related to transportation authorities such as NY Transit Authority so that you can get back on track towards financial stability.
When looking at bankruptcy to deal with unpaid tolls, it is essential to differentiate between Chapter 7 and 13. With a Chapter 7 Bankruptcy, the MTA and similar tolls are discharged, though the violation fines and penalties generally survive. Chapter 13 Bankruptcy goes further—it discharges the fines and penalties too—through a repayment plan over an extended period (usually 3-5 years). This could provide much needed relief if you are unable to pay off your entire balance right away but still want some form of repayment plan in place instead of complete dischargeability. In chapter 13 there is NO requirement that the tolls are paid back. A chapter 13 plan can be sucessful even if none of the tolls are paid back in the case.
Declaring bankruptcy may be a useful solution for those having difficulty paying their tolls, as it can allow them to write off the debt and gain fiscal respite.
FAQs in Relation to Mta Tolls and Bankruptcy
What happens to unpaid tolls in NYC?
Unpaid tolls in NYC are billed through the Tolls by Mail system by the tolling authority that owns the crossing — MTA Bridges and Tunnels for city bridges and tunnels, or the Port Authority for the Hudson River crossings. If unpaid, a violation notice will be sent with instructions on how to pay the outstanding amount due, and the debt can eventually be referred to a collections agency. Failure to comply may result in further legal action such as wage garnishment or liens being placed against property owned by the violator. Prompt payment of any tolls that remain unpaid is essential to avoid further legal repercussions such as wage garnishment or liens on property.
How do I waive a toll violation in NY?
Waiving a NY toll infraction may be possible, depending on the circumstances of your case. Generally speaking, if you can demonstrate financial hardship or that the violation was an error, then you may be able to have your ticket waived. You should contact a qualified bankruptcy attorney who specializes in Chapter 7 and 13 consumer bankruptcies for advice about how best to proceed with waiving your toll violation. A qualified bankruptcy lawyer can assess your situation and inform you if a waiver is feasible based on the particulars.
Can your car get towed for unpaid tolls in NYC?
Yes, your car can be towed for unpaid tolls in NYC. The NYC Department of Transportation has the power to tow any automobile with 3 or more unpaid tolls amounting to $200 or higher. If you are unable to pay off these violations before they reach this threshold, then it is likely that your car will be towed and impounded until all fees and fines are paid in full. If your vehicle is towed, you will be liable for the towing costs and all related fines.
Can my registration suspension be lifted if I file for chapter 13?
Yes, if the suspension is due solely to unpaid tolls then filing a chapter 13 Bankruptcy will lift the suspension. Chapter 7 may not, because the violation penalties that often drive the suspension can survive a Chapter 7 discharge.
Conclusion
When it comes to mta tolls and bankruptcy, the best advice is to explore all your options. Bankruptcy can help you manage debt associated with unpaid tolls or fines, but it’s important to understand how traffic violations will impact your finances in the long run. It may be worth considering other methods of resolving outstanding payments such as working out a payment plan with the Metropolitan Transportation Authority (MTA). Ultimately, by understanding what debts are dischargeable under Chapter 7 vs 13 and taking steps to avoid additional fees from violation notices, you’ll be able to make informed decisions about how best handle MTA tolls and bankruptcy.
If you are facing financial hardship due to MTA tolls and other debts, contact the Law Office of William Waldner for a free consultation. Our experienced attorneys will provide tailored solutions that can help you get back on track.
