Thursday, September 2, 2021

Bankruptcy Can Reinstate A Suspended Driver's License

Over the years I have had several clients whose driver's license was suspended  because of unpaid judgments from having an accident when driving without insurance.  (Note: I do not recommend driving without insurance!!!)  Not having a drivers license is terrible, because almost everyone uses a car to get to work.  If you can't work, you don't earn money;  if you don't earn money you can't pay your bills.   

If you have such a judgment on your record, Minn. Stat. 171.182 provides that your judgment will be suspended on account of the judgment until it is paid.

In order to avoid having your license suspended, you usually have to get auto insurance and set up a payment plan for the judgment for the damages caused in the accident. If the judgment is large, or just too large for your budget, or if you fail to set up a payment plan with the judgment creditor, the judgment creditor reports you and your license is suspended until the judgment is paid or expires.

But, if the accident which led to the judgment was not a result of DUI (alcohol or drugs or "another substance"), and if the injury was not intentional, filing  bankruptcy will help you get your  driver's license back.  This is because the bankruptcy will wipe out the judgment. 

If you have this situation, call me to discuss whether bankruptcy may help you get your license bank.  I'm at 320-252-4473.

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