Can the collection agency suspend my license?

UPDATED: Sep 30, 2022

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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


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

Answered 6 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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