Get Your License Back Using Bankruptcy
For many individuals, a driver’s license is one of the most important tools in life, necessary to commute to and from work, take children to and from school, and to conduct daily affairs. Without a driver’s license or access to a convenient public transportation system, life becomes infinitely more difficult. Since most auto-related debts, such as judgments owed from accidents, are unsecured debts they can be discharged by filing a Chapter 7 bankruptcy.
If you have lost your license due to financial reasons, the good news is that filing a Chapter 7 or Chapter 13 bankruptcy can not only relieve your financial stress, but it can get you your license back! For example, if you were determined at fault for an accident, and were either uninsured or under-insured, the DMV will most likely suspend your license until the other party’s personal injury or property claims are settled. Bankruptcy can wipe out these debts and allow you to regain your license.
Some debts cannot be resolved in bankruptcy though. These include alcohol- related license suspensions, willful or malicious injury, parking and/or traffic tickets, debt owed to the DMV or other government entities in the form of fines and penalties. These debts must be paid before you can obtain your license again. There is still hope however; even if you owe one of these types of debts or alimony or child support, filing a Chapter 13 will allow you to repayment these debts over the life of your plan. If you can demonstrate that you are making timely payments on your Chapter 13, then the DMV will usually release your license.
Once the Bankruptcy Court has granted a discharge, the next step to license restoration is to call the DMV. It’s important to note, that you’ll be required to pay a renewal or reinstatement fee to get your license back and begin driving once again. You’ll also be required to show proof of insurance and may have to fill out some additional paperwork.
If you have any questions regarding how you can get your driver’s license released, contact a Sacramento bankruptcy lawyer or a Roseville bankruptcy lawyer today for a free consultation. Call 1-916-780-7005 to start your journey towards financial freedom!
Categorized in: Filing Bankruptcy