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Can filing for bankruptcy help a person get their New Jersey drivers license back?

April 26, 2017Bankruptcy driver filing help license NEW JERSEY person

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Can filing for bankruptcy help a person get their New Jersey drivers license back?

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If a driver loses their license solely because they couldn’t pay court-ordered damages caused in an accident, bankruptcy will allow them to get your license back. However, a Chapter 7 bankruptcy can not permit a person to wipe off their New Jersey DMV surcharges. DMV surcharges can only be partially discharged in a chapter 13. Basically, the debtor will have to pay back a small portion of the surcharges over three years. If the debtor does not own any real estate, in most cases, the debtor can only pay $50 in a wage earner plan in a Chapter 13. This will enable the debtor to wipe out the DMV surcharge. Remember, DMV surcharges are not wiped out in a Chapter 7. After the automatic stay is over, NJ DMV will continue to send out surcharges to the debtor if they only filed for a Chapter 7.