Unfortunately, falling into debt is much easier than many people believe it to be, as all it may take is one accident or traffic ticket to cause the rest of your finances to spiral. As such, if you want to file for bankruptcy, you may worry about the impact it has on your ability to retain your driver’s license. If this reflects your circumstances, it’s critical to understand what you can expect from this process, including the importance of working with a driver’s license suspension & bankruptcy lawyer to help you navigate your legal options during this difficult process.
Will I Lose My License During Bankruptcy?
One fear many have is that they will lose their license when declaring bankruptcy. After all, you may find that this process can impact several areas of your life, so this is a valid concern many have, especially if they have debts from an accident or outstanding fines and fees related to their license.
You may be surprised to find that filing for bankruptcy can help you get your license back if it has been suspended or revoked due to outstanding fines and fees.
When you file for bankruptcy, regardless of whether you pursue Chapter 7 or Chapter 13, you will invoke the automatic stay. Essentially, when you file, your creditors will be notified and must immediately cease all collection efforts against you. This includes wage garnishments, filing lawsuits, foreclosing on property, and even contacting you regarding the debt you owe. As such, this can give you the opportunity to catch up on the outstanding debts related to your lost license.
Additionally, you’ll find that when filing for bankruptcy, certain debts are discharged, meaning you are no longer legally responsible for making the payments. This means certain debts, like traffic tickets or DMV fines, can be discharged at the end of your case. However, you should note that if your debt is in relation to a criminal matter, such as an accident in which you injured someone while under the influence, bankruptcy will not be able to help with this debt.
If I Get My Driver’s License Back, How Do I Reinstate It?
It’s important to understand that just because you have gotten your debts related to the suspension of your license back does not mean you can immediately begin driving. This is because you must have your license reinstated before you can resume traversing the roads.
In order to get your license back after it’s been revoked or suspended for any reason, you’ll need to pay the reinstatement fee and provide proof of insurance. You may be required to obtain SR-22 insurance, which is a special form of insurance mandated by the state that shows proof of future financial responsibility.
As you can see, there are a considerable number of factors that you must take into account when filing for bankruptcy in Tennessee. That is why working with an experienced attorney with the Arnold Law Firm is in your best interest. Our team understands that bankruptcy can be an overwhelming and confusing process, which is why we will do everything in our power to make this as simple as possible for you. Contact us today to learn how we can guide you through these complex times.
