Driver's License Suspension Due to Outstanding Debt
Depending on state law regulations, a motorist may have their driver's
license suspended if they have an outstanding debt related to a civil
judgment. For instance, back child support payments or lack of insurance
are common reasons why someone may have their license put under suspension.
While it is true a suspension is a consequence, many in this situation
have a legitimate argument in their favor; it becomes increasing difficult
to make money when your ability to drive is taken away from you.
Debts That May Qualify for Bankruptcy Discharge
There are certain debts that may qualify for bankruptcy discharge in
Chapter 7 bankruptcy
, while others may be included in a
Chapter 13 bankruptcy
repayment plan. If you file bankruptcy, include the debt in question related
to the suspension, you may be able to get your license reinstated by the
DMV with proof of filing, or by showing a copy of your petition that has
been filed with the bankruptcy court.
Keep in mind, you may need to pay a fee for reinstatement of your driver's
license and provide proof of insurance. Contact the DMV to review requirements
you need to meet in order to get your license reinstated.
So what debts may qualify for discharge or repayment? If you owe debt related
from a minor fender-bender to an insurance company or individual or monetary
damages in relation to a civil judgment or vehicle accident, the debt
may qualify for discharge or elimination. Debt from malicious injury or
DUI may be satisfied through a Chapter 13 repayment plan. As long as you
make payments according to your plan you can get your licenses reinstated.
If your case gets dismissed or you fail to make payments, your licenses
could get suspended again by the DMV.
Considering Bankruptcy? You May be Able to Avoid the Suspension
While bankruptcy may help restore driving privileges, if you feel your
driver's license is in danger of being suspended, contact an experienced
bankruptcy attorney in Dallas-Fort Worth to review your options. You may
be able to avoid the suspension. If you would like to set up a free consultation
to hesitate to