In Re Perrin

233 B.R. 71, 41 Collier Bankr. Cas. 2d 1572, 1999 Bankr. LEXIS 740, 1999 WL 246406
CourtUnited States Bankruptcy Court, D. New Jersey
DecidedApril 22, 1999
Docket19-12045
StatusPublished
Cited by9 cases

This text of 233 B.R. 71 (In Re Perrin) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Perrin, 233 B.R. 71, 41 Collier Bankr. Cas. 2d 1572, 1999 Bankr. LEXIS 740, 1999 WL 246406 (N.J. 1999).

Opinion

OPINION

JUDITH H. WIZMUR, Bankruptcy Judge.

The question presented here is whether a municipal court may resentence a Chapter 13 debtor to incarceration or community service in lieu of a fine following the confirmation of a plan which proposes to pay the traffic fine in full through the plan. Debtor seeks here to set aside the order of the Vineland Municipal Court which vacated his fine and resentenced him to community service, and to compel the municipal court to accept the payment of his fine as provided for in his confirmed Chapter 13 plan.

FACTS

Debtor, Eric K. Perrin, filed a voluntary petition for relief under Chapter 13 of the Bankruptcy Code on March 31, 1997. He scheduled unsecured debt in the total amount of $11,380.00, including a debt for unpaid traffic fines owed to the Vineland Municipal Court in the amount of $350.00. 1 Debtor’s Chapter 13 plan, proposing to pay in full traffic fines due to four municipali *73 ties, including Vineland, plus the balance of counsel fees, was confirmed without objection on March 11, 1998 at $65.00 per month for 60 months. Debtor is current in making his monthly payments.

In April 1998, debtor received a notice from the Vineland Municipal Court, dated April 25, 1998, seeking to compel the debt- or to pay his outstanding fines. Judge John A. Raspar apparently considered re-sentencing the debtor to community service in lieu of payment of the fines, but took no formal action at that time.

On. May 11, 1998, debtor filed a motion seeking to prevent the Vineland Municipal Court from issuing a warrant for his arrest and from revoking his driving privileges for being delinquent in making payments toward his court imposed fine. Debtor also sought to compel the municipal court to abide by the terms of his confirmed Chapter 13 plan and to accept payment of his fine as provided for in his plan.

The Vineland Municipal Court sent a second notice to the debtor, dated May 23, 1998, threatening the loss of the debtor’s driving privileges if he did not pay the amount due.

This court issued a written opinion, dated July 20, 1998, in which we concluded that the municipal court’s action in sending collection notices to the debtor violated the automatic stay, and that the municipal court was bound by the debtor’s plan. We distinguished this ease from our decision in In re Cuevas, 205 B.R. 457 (Bankr.D.N.J.1997) wherein we had applied the New Jersey Supreme Court’s characterization of incarceration under N.J.S.A. 39:5-36 as substituted punishment rather than debt collection and held that a municipal court could resentence the debtor preconfirmation to community service in lieu of paying the fine. In Cuevas, the municipal court gave up its right to collect delinquent fines from the debtor. In contrast, the municipal court here was attempting to compel the payment of its claim. At that time, we declined to reach the question of the municipal court’s ability to resentence the debtor post confirmation, ruling that such a determination would be premature.

Subsequent to our decision, the Vineland Municipal Court sent a notice to the debt- or, dated July 23, 1998, advising him that reconsideration of his case had been scheduled for July 30, 1998. Appearing pro se, the debtor was sentenced to nineteen days of incarceration, in lieu of which the debtor could perform 200 hours of community service. 2 In the July 30, 1998 judgment entered by Judge Raspar, the court acknowledged that the notices demanding payment sent to the debtor, which were the subject of our last decision in this case, were sent in error. The court explained that it’s policy, “upon being placed on notice of a bankruptcy being filed and/or confirmed, [is] to ‘advance’ the default date 5 years so as to avoid the automatic generation of such notices.”

Judge Raspar framed the issue presented as “whether payments should be accepted by this court for the above noted fines in the manner as prescribed [in the confirmed Chapter 13 plan].” He noted first that the fine imposed upon the debtor was punishment imposed by a sovereign court for violation of the law, default in the payment of which may result in incarceration. N.J.S.A. 39:5-36. Second, Judge Raspar believed that the court could not accept payments over the term of the Chapter 13 plan because under New Jersey law, fines must be paid “no later than 6 months from the date of the conviction.” N.J.S.A. 39:4-203.1. 3 Finally, Judge Ras- *74 par cited the debtor’s “arrogance” in continuing to drive while suspended and in failing to honor the installment payment order over the last four years, and sought to “send a message” that the court can enforce its own rulings. For these reasons, Judge Kaspar vacated the debtor’s fíne and resentenced him to community service.

The debtor now comes before this court' seeking to vacate the municipal court’s order and to bind the municipal court to the terms of his confirmed Chapter 13 plan.

DISCUSSION

The debtor herein contends that the confirmation of his Chapter 13 plan providing for the full pajnment of court imposed fines deprives the municipal court of its authority, under state law, to resentence him. The municipal court believes that any term of repayment other than that dictated by state statute is unacceptable and that it retains the authority to resen-tence the debtor notwithstanding the confirmation of debtor’s plan. In In re Cuevas, 205 B.R. 457 (Bankr.D.N.J.1997), we concluded that a municipal court could re-sentence a debtor preconfirmation for motor vehicle violations in lieu of requiring the repayment of a fine. This case requires us to consider the impact of confirmation on the municipal court’s authority to modify the debtor’s punishment.

We will first review the criminal proceeding exception to the automatic stay, examine the applicability of the exception to quasi-criminal proceedings, and then consider the impact of the confirmation of debtor’s Chapter 13 plan.

I. The Automatic Stay and the Criminal Proceeding Exception.

It is axiomatic that the automatic stay serves as “one of the fundamental debtor protections provided by the bankruptcy laws.” H.R.Rep. No. 595, 95th Cong., 1st Sess. 174 (1977). It enjoins the commencement or continuation of judicial actions against the debtor, the enforcement of pre-petition judgments, and other acts to collect pre-petition claims. 4 See In re Krystal Cadillac Oldsmobile GMC Truck, Inc., 142 F.3d 631, 637 (3d Cir.1998) (“The legislative history to section 362 and our jurisprudence leave no doubt that the scope of the automatic stay is broad.”).

An important exception to the automatic stay is “the commencement or continuation of a criminal action or proceeding against the debtor.” 11 U.S.C. § 362(b)(1).

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Bluebook (online)
233 B.R. 71, 41 Collier Bankr. Cas. 2d 1572, 1999 Bankr. LEXIS 740, 1999 WL 246406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-perrin-njb-1999.