Can I Get My License Back If I File for Bankruptcy?

For most of us, a driver’s license is one of the most important things in our wallet. This is because a driver’s license allows to commute to and from work, take our kids to and from school, and to conduct our daily affairs. When you lose your driver’s license, life becomes much more difficult. But did you know most auto-related debts are unsecured debts? This means they can be discharged if you file a Chapter 7 bankruptcy.

Was your license suspended or revoked due to financial reasons? Then filing a Chapter 7 or Chapter 13 bankruptcy can help you get your license back. Let’s say you were found at fault for an accident and you didn’t have insurance, so the DMV suspended your license until the other party’s personal injury or property claims are settled. By filing for bankruptcy, you can eliminate the debt and regain your license.

Can All of My Debt Be Resolved in Bankruptcy?

Only certain debts can be resolved in bankruptcy. Debts that can’t be resolved through bankruptcy include:

  • Alcohol-related license suspensions
  • Parking and/or traffic tickets
  • Willful or malicious injury
  • Fines and penalties owed to the DMV

If you have any of the debts above, they must first be repaid before you can get your license back. If you file Chapter 13, you can repay these debts through a repayment plan. If you show the DMV you are making timely payments on your Chapter 13 repayment plan, they might release your license.

Do you have more questions about discharging your debts through bankruptcy? Call (321) 320-6088 today to schedule your free case evaluation with our Brevard County bankruptcy attorneys.