Losing Your Driver’s License Can be a Big Headache
Losing your driver’s license can have a huge impact on your life. Without a license, meeting basic needs is much more difficult. Suddenly, you may still have to make car payments, but cannot use your car to get to work or the store. This can be costly and inconvenient. But can bankruptcy help?
Bankruptcy may be able to help you restore your driving privileges, if the circumstances are right.
If your driver’s license was suspended because you failed to pay surcharges, filing for bankruptcy will immediately restore your driving privileges. You may have to pay a small fee, but generally these surcharges are dischargeable in bankruptcy.
Generally, government fines and surcharges are not dischargeable in bankruptcy, which means there is no way to get rid of them. But any fines or surcharges that the government pawns off to third party companies for collection can be discharged, even though they stem directly from government fines. This is how most Motor Vehicle Division surcharges are dischargeable in bankruptcy, as third party companies are often sold the right to collect the surcharges from you.
Why Was Your License Suspended?
If your license is suspended for other reasons, such as due to conviction for a driving offense or other crime, bankruptcy will probably not be able to restore your license. Likewise, if your fine has not been sold to a third party, you will not be able to dischargethat debt and thereby restore your license.
To learn more, contact an experienced and qualified bankruptcy attorney in your area. There are many factors involved in determining whether your driver’s license will be reinstated upon your filing for bankruptcy. Additionally, the costsand effort involved in filing for bankruptcy should only be undertaken after a careful consideration of whether bankruptcy will help you overall, in addition to restoring your license.