Driver's License Suspension and Bankruptcy

I have had the opportunity to review many cases were individuals have had their driver's licenses suspended by the Florida Department of Highway Safety and Motor Vehicles after a Judgment was entered against that individual by an insurance company.

The classic example involves an individual who does not have insurance coverage on their motor vehicle. The vehicle is involved in an accident and the other party's insurance has the cover the damage to their own insured. The other insurance company then sues the uninsured motorist for the money that they have paid out. This suit results in a Judgment against the uninsured motorist, sometimes for tens of thousands of dollars.

The insurance company then submits the Judgment to the Florida Department of Highway Safety and Motor Vehicles and the driver's license of the uninsured motorist is suspended and remains suspended until the Judgment is satisfied. The uninsured motorist is now left with the option of driving illegally or relying on others for his or her transportation. This creates a substantial amount of stress, financial crisis and possibly criminal charges if the driver is caught driving with their license suspended.

The United States Bankruptcy Code provides a solution to this problem. Because the suspension of the driver's license resulted from a debt, an individual can file for bankruptcy, discharge the debt and then the Florida Department of Highway Safety and Motor Vehicles will re-issue a valid driver's license. If the individual files under Chapter 7 of the Bankruptcy Code they can have a valid license in 90 to 110 days from the date of filing.