Bankruptcy and DWI Law

Unfortunately, after many DWI cases the clients become so broke that bankruptcy is their only option. DWI drivers must be warned that a DWI conviction can trigger many collateral consequences that detrimentally affects their lives. There are heavy fines and massive surcharges. Many times a DWI charge will get a person fired from their job. Finally, for some people a DWI conviction may ultimately trigger a divorce or a separation. The cold reality is that a DWI conviction often causes a “chain reaction” that causes a person to file for bankruptcy.

New Jersey is the only state that has surcharges. This is a unique invention by the Garden State that makes our home state uniquely miserable. There are many positive aspects about living in New Jersey. However, motor vehicle surcharges are not one of them. DWI drivers must also must be warned that a DWI conviction will in most cases triple their auto insurance bill. In many instances people just can’t afford to drive again. However, since mass transportation is terrible in New Jersey, most people drive anyway. Many of these drivers are busted once again for the charge of driving while suspended. This violation will cause yet more surcharges. In summary it is not uncommon at all for a repeat DWI driver to have to pay $10,000 to $15,000 worth of surcharges. Please note that if you do not pay your surcharges, then the MVS will charge you interest and penalties. It is a rotten system! The surcharge system is really a form of double punishment. Many Municipal Court judges don’t agree with the surcharge system. However, they can’t change the law, and they have to comply with these laws.

On the bright side, New Jersey does not treat a DWI as a criminal offense. In New Jersey, a DWI charge is still a motor vehicle charge. In most states, a DWI is treated as a criminal offense. Therefore, in many other states if you are busted for a DWI, then you will have a criminal record. New Jersey does not give you a criminal record if you are convicted for DWI. However, the Garden State will fine and surcharge you until you are forced to file for bankruptcy.

Fortunately, bankruptcy can provide some relief to DWI drivers. DWI fines are not dischargeable in any type of bankruptcy proceeding. These fines must be paid. If a person does not pay their DWI fines, then a bench warrant will be issued, and he will be picked and arrested by the police. However, surcharges can be partially discharged in bankruptcy. Surcharges can never be discharged in a chapter 7 case. If a person files a chapter 7, then the automatic stay will stop the MVS from their collection efforts to collect the surcharges. This automatic stay protection will only last for about six months, until the bankruptcy is over. Once the bankruptcy is over, then the MVS will start their collection efforts again. Many people are shocked when they realize that their surcharges are not wiped out in the bankruptcy.

On the bright side, most of the surcharges can be wiped out in a chapter 13 bankruptcy. Chapter 13 is a bankruptcy wherein a person has to pay a portion of their debt over three to five years. In most cases, a DWI driver in a chapter 13 case can pay $50 a month for three years. If the DWI driver makes all of the bankruptcy payments, then they will receive a discharge. Basically, the DWI driver can have most of their surcharges wiped off if they make the plan payments. In summary, if a person has “mega” surcharges, then they must file a chapter 13. A person can’t wipe out surcharges in a chapter 7.