Can the collection agency suspend my license?

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Can the collection agency suspend my license?

I was in a car accident and I had no insurance. I received a letter stating
that I’m liable for paying 10,000 for damages which I don’t have. I called
the collection’s agency to work out a payment plan, but the result was a
plan i can not afford. What are my options? and can a collection agency
really suspend my license for not paying this 10,000 debt? I am in the state
of Virginia.

Asked on February 1, 2017 under Accident Law, Virginia

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The collection agency itself cannot suspend your license.  The collection agency notifies the Department of Motor Vehicles which can suspend your license for driving without insurance.
As for the $10,000 damage claim which you cannot afford to pay, when there is a court judgment against you and you know the specific amount of that judgment, it would be advisable to file bankruptcy.  Chapter 7 bankruptcy is straight liquidation which will eliminate that debt.


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