07/26/2022
If you are uninsured and have been found at fault in an automobile accident, then it is possible for you to have your driver’s license revoked. Most people are unaware that a bankruptcy can help you get your driver’s license back if this happens to you.
When you are found to be at fault in an automobile accident and you do not have insurance to cover the medical expenses and damages to the other person’s vehicle, they become a creditor. They can go to the court and ask the judge to give them a judgment against you. They are allowed to attach the judgment to your real property so that if you ever sell your house, then they will get paid out of the proceeds. They can also garnish up to 25% of your paycheck or 100% of your bank account. Finally, they can go to the State and have your license revoked until you pay the judgment with interest in full. All of these actions are considered collection attempts.
When you file a bankruptcy, the court puts a stay in place that protects you from any attempts by your creditors to collect a debt. This includes debts that you have incurred because you were uninsured when you were found at fault in an automobile accident. When you file a Chapter 7 or a Chapter 13 bankruptcy, you can add the other person as a creditor in your case and stop the collection activity associated with the automobile accident.
In order to get your driver’s license back in good standing, you can take a copy of your petition with the other person listed as a creditor and show it to the DMV. They will restore your driver’s license while you are in bankruptcy. Once you complete your bankruptcy and receive a discharge in your case, you will no longer be liable for the automobile accident.
There are a few exceptions that you need to be aware of when trying to determine if you should file a bankruptcy in order to have your driver’s license reinstated. If you were involved in an automobile accident and it has been determined that you deliberately or maliciously injured the other person, then that debt cannot be included in a bankruptcy. The other exception is that if you have been found guilty of driving under the influence when you were involved in the automobile accident, then you are disqualified from having your license reinstated by filing a bankruptcy. So, as long as you didn’t run somebody over on purpose or were drunk when you had your accident, then a bankruptcy can help you get your driver’s license back.
Many people find themselves in the unfortunate position of having to drive to work, school, or the doctor even though they cannot afford car insurance. Even people considered high risk drivers need to be able to get back and forth to their job. The cost of Uber and the lack of public transportation can make it impossible to be able to do so. If you were in a similar position and were unfortunate enough to have been involved in an automobile accident, you shouldn’t be kept from providing for your family.
Please reach out to us to schedule a free, no pressure consultation so that we can meet with you and discuss your options to help you get your life back on track.
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