If your driver license has been suspended, you can get your license back by filing for bankruptcy. Your driver license can be suspended for a number of reasons. You may have unpaid traffic tickets. You may have a judgment against you in connection with an auto accident you were in with no automobile insurance. Driver Responsibility Fees are being phased out. But some people still have these fees, which can be a major obstacle to getting back on the road.
Within one week after you file for bankruptcy, you will receive in the mail from the Bankruptcy Court your notice of hearing. This notice states who your judge is, who your trustee is, and the date and time of your meeting of creditors. For an overview of the meeting of creditors, see my article entitled “What to Do at Your Meeting of Creditors.” You take this notice to a Michigan Secretary of State’s office, and your driver license will be restored within approximately two to three weeks.
Unpaid traffic tickets themselves are not dischargeable in a Chapter 7 “debt liquidation” bankruptcy, but they can be repaid in a Chapter 13 “debt repayment” bankruptcy. For an explanation of Chapter 7 and Chapter 13, see my article entitled, “The Difference Between Chapter 7 and Chapter 13, and Which One Is Right For You.” Driver responsibility fees are dischargeable in a Chapter 7 and in a Chapter 13. A Judgment against you for an auto accident in which you had no insurance is likewise dischargeable in both Chapter 7 and Chapter 13.
Bankruptcy will not get your driver license restored if it was suspended for operating under the influence. DUI suspensions are for certain time periods, and a bankruptcy filing does not shorten those time periods. Bankruptcy will also do nothing to restore your license if it was suspended for having 12 points on your license.
The above information is a general overview and is not intended to be used as legal advice. If you are considering filing for bankruptcy, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.
By: Michael Benkstein, Esq.
Managing Attorney, Bankruptcy Department
The Law Offices of Joumana Kayrouz, PLLC