Tollway Violations & Chapter 7 Bankruptcy

“There is Always a Toll to Pay”

The issue is whether the filing of a Chapter 7 bankruptcy case will undue the suspension of your driver’s license due to tollway violations with the tollway authority.

Analysis

If your license is suspended due to tollway violations, don’t expect the filing of a Chapter 7 bankruptcy case to undue the suspension.  The failure to undue the suspension on the part of the tollway authority does not constitute a violation of the automatic stay.  Since the tollway authority is not attempting to collect a debt, there is no stay violation. 

The tollway authority has no duty to restore your driver’s license.  The fact that the debt is non-dischargeable is not a factor in whether the tollway authority should or should not release the suspension with the secretary of state or department of motor vehicles.  If your license was suspended prior to the filing of the Chapter 7 bankruptcy case, the tollway authority has no obligation or mandate to lift the suspension and report same to the drivers’ licensing department.

It was thought that tollway violations would be treated similar to that of parking tickets.  In those cases, license suspensions are lifted during the pending Chapter 7 bankruptcy case.  The suspensions go back into effect once the bankruptcy cases have gone to discharge provided that the debtors have not paid the non-dischargeable debts in full by that time.  Unfortunately, the tollway authority has not been as willing to undue the suspension.  To the contrary, the tollway authority has relied on case law that imposed no duty or obligation on the part of the tollway authority to do anything.  The only restriction is that the tollway authority cannot attempt to collect upon the debt while you are in a Chapter 7 bankruptcy case.  Once the case has gone to discharge, the tollway authority is once again, permitted to pursue you to collect the debt. 

If the Chapter 7 bankruptcy case was filed prior to the license being suspended, then the tollway authority would not be permitted to invoke the suspension.  However, in the example cited above, you were technically suspended prior to the date of filing; thus, the suspension continues during the Chapter 7 bankruptcy case.

You  should plan on making payment arrangements during your pending Chapter 7 bankruptcy case so that your non-dischargeable debt can be paid down.  Since most or all of your remaining debt is being discharged, you should have funds available to start making payments.