Yes, in some circumstances, filing either a chapter 7 or chapter 13 bankruptcy will allow you to get your suspended driver’s license reinstated.
The Domino Effect of a Suspended License
Even though it is a requirement in many states to carry a bare minimum of liability insurance, unfortunately, many folks are just simply unable to afford to do so. Many times, this results in an uninsured auto accident. If the uninsured driver is at fault and unable to pay for the damage to the other party, it can result in several bad things to include a lawsuit, judgments and even the suspension of the uninsured’s driver’s license.
Although none of these consequences are good, the suspension of the driver license can be crippling! Without a license, one cannot get a car registered in their name, a valid tag for a vehicle they already have and they take great risk of driving on a suspended license. Therefore, the uninsured person typically cannot remain employed. If not employed, it makes it seem impossible to ever be able to get out of this situation.
How Bankruptcy Can Help You
If you are in this situation, I recommend exploring the filing of a chapter 13 or chapter 7 bankruptcy that will allow you to immediately get your driver’s license reinstated in most circumstances. It is important to speak to a reputable bankruptcy attorney to explore this as there are some nuances as to whether you can or cannot discharge this type of debt in bankruptcy.
For instance, if you were charged with driving under the influence (DUI) in conjunction with the uninsured accident, the debt typically cannot be discharged in any kind of bankruptcy. Another example would be a judgement for negligence or wantonness in conjunction with the accident. This is a little more of a gray area than a DUI charge and may still be able to be included in a bankruptcy. These nuances are why it is very important to consult with an attorney who is specializes in bankruptcy. In most cases, where I see a suspended license as a result of an uninsured accident and it is not this serious, just a run of the mill accident and we are able to successfully file a chapter 7 or chapter 13 and get your driver’s license reinstated in a timely manner.
The process can actually be quite quick to get your license reinstated once you file your bankruptcy petition. Typically, once filed, your attorney should send a letter to the Department of Public Safety with all of your bankruptcy information. At that point, you can contact the Department to start the reinstatement process. There is a reinstatement fee that you will still be responsible for so you do need to plan for it as well.
If we can help you with this type of situation or any financial problems you may currently be facing, please contact our office nearest you to come in and speak with one of our attorneys face to face. We can help you resolve these or other debt issues.
Amy K Tanner is a shareholder in several of the Bond & Botes Law Offices. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She focuses primarily on consumer bankruptcy law in the Huntsville and Decatur offices.Read her full bio here.