Let's make it clear right off the bat: filing for bankruptcy does not guarantee your suspended driver's license will be reinstated.
Whether or not bankruptcy can help you depends on the reason your license was suspended in the first place.
If your license has been suspended due to a failure to pay off traffic fines, filing for Chapter 7 bankruptcy cannot directly help reinstate your license. Bankruptcy law clearly states Chapter 7 will not eliminate any penalties or fines you owe to a governmental unit.
The suspension on your driver’s license is in effect until you satisfy the judgment associated with the suspension, which you can achieve by:
Filing a bankruptcy can help relieve your obligation to pay some of your other debts. This effect may indirectly increase your ability to pay off traffic fines on your own and thereby reinstate your license. Filing for Chapter 7 helps you eliminate dischargeable debts such as credit card debt, debt from medical bills, debt from civil judgments and some tax debt.
Clearing dischargeable debts gives you more flexibility to pay off non-dischargeable debts, such as traffic fines. Bankruptcy can makes paying off your fines and penalties easier.
Have you been sued for a car accident at a time when you did not have car insurance? This can result in a large costly judgment and a suspension of your license. Filing for bankruptcy relieves the debt that triggered the suspension on your license. When this debt relief is combined with the reinstatement of car insurance, your license can be restored. Note: there may be restrictions to this if you are accused of drunk driving.
If you find yourself with overwhelming amounts of debt, Oak Creek bankruptcy lawyer Steven R. McDonald is here for you. He’ll provide clear explanations of your options when you need to reinstate your license and get your financial life back on track.