Can I file bankruptcy to get a suspended license back?
Question Details: I was in an automobile accident years ago, I never reported it, I never did anything for it. I received letters saying I did up to 10thousand dollars of damage but I find this hard to believe, I only knocked off there back bumper slightly. Since I did not report this to my insurance, is this why they're claiming I owe them so much? (my deductable or what have you was $10,000) Their insurance company says I need to pay them all of it out of pocket? I cannot afford thousands of dollar; what can I do? Can I file bankruptcy?
In Washington State, there is a motorist responsibility statute that allows a creditor to apply to the DMV to suspend a driver's license when they have obtained a judgment due to a driver causing a motor vehicle accident. I assume from your question that this is what has happened to you.
If so, then you may be able to get your license back by filing for bankruptcy. I suggest that you meet with an attorney to distinguish if your particular accident is the type where the debt is dischargable in a chapter 7, versus those that would not be dischargable in a chapter 7, in which case you would need to file a chapter 13. Section 523 of the bankruptcy code describes which debts are dischargable in a chapter 7 and most bankruptcy practitioners such as myself can analyse this issue fairly quickly. I do suggest using an attorney here because bankruptcy is truely a complex specialty where pro se litigants can get themselves in a whole lot of trouble very quickly. You will also want the bankruptcy attorney to assess the effect of one type of bankruptcy or another on all of your debts, not just the auto accident debt.
One final thought, the creditor can easily unsuspend your license, if you have set up a payment plan with the creditor. If you fail to pay, they can re-suspend. It is a one form sheet of paper submission process with the DMV.
As always, my comments are only applicable to Washington State and are not a substitute for getting competent, local, and more comprehensive, legal help.
Good luck!
