Suspended Driver’s License Can Be Reinstated in Bankruptcy

provided as an educational service by
by
Richard Fonfrias, J.D.
Chicago’s Financial Rescue & Bankruptcy Lawyer
Fonfrias Law Group, LLC

Drivers’ licenses can be suspended for many reasons: Failure to pay parking tickets. Moving violations. And driving without insurance when involved in an accident — among others.

The most common problem is when a driver gets into a non-injury accident and has no insurance. In that case, the driver’s license can be suspended unless the person (1) pays for the damage, (2) sets up an installment plan to pay for the damage, or (3) files for Chapter 7 bankruptcy. Then the license can be reinstated and the driver gets a fresh start.

If parking tickets are involved, the driver can file a Chapter 13 bankruptcy to pay the tickets, which cannot be discharged in a Chapter 7 bankruptcy. As long as the driver pays the tickets according to the Chapter 13 repayment plan, his or her driver’s license will be reinstated. If the person fails to complete the Chapter 13 bankruptcy, or fails to pay the tickets, the driver’s license can be suspended again.

Should you find yourself facing the loss of your driver’s license due to any of the reasons cited above, your first course of action should be to speak with an experienced bankruptcy lawyer. A qualified financial rescue and bankruptcy attorney, who specializes in bankruptcy law, will be able to help through the bankruptcy process and explain in detail what you can expect when you file for bankruptcy.