Reinstating Your Driver’s License: How Bankruptcy Can Help

If your driver’s license has been suspended in Florida due to an insurance judgment, you may be wondering what options you have to get your license back. One solution that many people overlook is filing for bankruptcy.

In this article, we’ll explore how filing for bankruptcy can help you reinstate your suspended driver’s license in Florida if it was suspended due to failure to pay an insurance judgment.

Why Your License May Be Suspended:

In Florida, if you are involved in an accident and do not have insurance, your driver’s license can be suspended until you pay for the damages. Additionally, if you have an insurance judgment against you and fail to pay it, your driver’s license can also be suspended.

How Bankruptcy Can Help:

Filing for bankruptcy can help in a few different ways:

1. Automatic stay: When you file for bankruptcy, an automatic stay goes into effect, which puts a stop to most collection actions, including those related to insurance judgments. This means that if your license was suspended due to an insurance judgment, the automatic stay can put a pause on those collections and give you time to address them.
2. Chapter 7 discharge: If you file for Chapter 7 bankruptcy and receive a discharge, you may be able to have the insurance judgment discharged as well. This means that you are no longer responsible for repaying the debt and the suspension of your driver’s license can be lifted.
3. Chapter 13 repayment plan: If you file for Chapter 13 bankruptcy, you can create a repayment plan to pay back your debts, including the insurance judgment. This along with the automatic stay listed above can help you get your license reinstated since the insurance company is barred from attempting to collect on the debt.

Conclusion:

If your driver’s license has been suspended in Florida due to an insurance judgment, filing for bankruptcy can be a solution to help you get your license back. An experienced bankruptcy attorney can go over you options with you to determine whether bankruptcy will help you reinstate you driver’s license.

Please feel free to reach out for a free consultation by emailing info@tejeslaw.com, calling (407) 734-5166 or using this link to schedule an appointment yourself.