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DMV Surcharges

How does my bankruptcy filing affect the DMV Surcharges that I owe?

If you have been assessed surcharges by the Division of Motor Vehicles, we will include that debt on your petition and list the Surcharge Administration as a creditor and forward notice of your bankruptcy case filing to the Surcharge Administrative Office in Trenton. After notice, the Surcharge Administrators will place a hold on your surcharge accounts and any outstanding suspensions that exist for nonpayment of the surcharges will be lifted pending completion of your bankruptcy case. It may be necessary for your to pay a restoration fee to DMV.

After you receive your bankruptcy discharge, Surcharge Administration will write off the entire balance of PRE-PETITION surcharges based upon your bankruptcy filing. However, understand that for instance, if you received a three thousand dollar surcharges for a DUI conviction 6 months ago, only the first one thousand dollar surcharge is pre-petition. As you are assessed a one thousand dollar surcharge for three years, the other two surcharges that become due next year and the year after are post-petition debts that ARE NOT dischargeable. Only surcharges are dischargeable. Judgments are not. Judgments may be dischargeable a year after your discharge on motion filed with the Superior Court of New Jersey. If your license is suspended for something other than nonpayment of a monies owing for surcharges, then even though your surcharges may be discharged, your license will remain suspended until you have served the full suspension period. For instance, if your driver’s license was suspended for a year for a DUI, even though the surcharge owing for that year is discharged, your license cannot be restored until you have served your sentence of suspension for the DWI conviction.

If your bankruptcy case is dismissed, you will remain responsible and you will be billed for the balance of your surcharge accounts.