Expert: Terry Leeders - 4/3/2007

Question
About three or four years ago i was driving a friends auto which was supposed to be insured (but wasn't).It was icy and a police officer jerked in front of the driver in front of me to pull over someone and the guy in front of me slammed on his brakes and i hit him at 5 mph it damaged my vehicle but did nothing to his and he also had a doctor to say he was injured ( I saw him a couple days later and he was in his work clothes) needless to say he sued me for 8000 dollars and I lost my license because of me not being able to pay considering over half my check goes to child support and that doesn't leave much when making 9 dollars an hour so I couldn't pay...my question is can that suit be filed in bankruptcy so That maybe some way i can get my drivers license back?  

Answer
In most instances, accident debts are dischargable in a bankruptcy case.  Once the case is filed, you can bring your bankruptcy notice to the secretary of state and pay a small fee to reinstate the license.  The exception to the rule is if  there was personal injury associated with a DUI/DWI, or if it was an intentional accident. (like to tried to run someone over!!)

The other exception is if there are parking/moving violation tickets involved or if it was suspended for any other reason.  You would usually have to pay those tickets before the hold on your license is released.  

So, if the only reason the license is suspended is for non-payment of that claim, a chapter 7 bankruptcy would eliminate the debt and allow you to re-instate your license.

For further clarification, or to discuss a possible bankruptcy case for you, feel free to contact my office.
Thanks
Terry