How Bankruptcy Can Help with Your Suspended Driver’s License

Every year, more than one million Florida residents are at risk of having their driver’s license suspended, and a large percentage of these suspensions are due to debt. Under Florida law, a resident can face a driver’s license suspension if a creditor receives a judgment against them for an unpaid debt. When a person’s driver’s license is suspended because of an unpaid debt, their financial circumstances typically worsen. Now, without the ability to drive freely, they may be unable to drive back and forth to work in order to earn a regular paycheck. And for Uber or Lyft drivers, or other rideshare and delivery drivers, a driver’s license suspension can be entirely devastating financially.

Bankruptcy may be able to help. Depending on the type of debt that resulted in your driver’s license suspension, you may be able to obtain relief from this punitive measure by having the debt discharged in a bankruptcy case. A West Palm Beach bankruptcy lawyer at our firm can tell you more.

Driver’s License Suspension Due to Unpaid Debt in Florida 

Not so many states permit driver’s licenses to be suspended as a result of unpaid debt, but Florida is among the states that permits this type of driver’s license suspension. Under Chapter 324 of the Florida Statutes:

“The department, upon receipt of a certified copy of a judgment…shall forthwith suspend the license and registration and any nonresident’s operating privilege of any person against whom such judgment was rendered.”

In short, if a creditor sues you because of an unpaid or delinquent debt and receives a judgment against you, your driver’s license can be suspended indefinitely until payments are made, including payments for certain fines and fees. Over the last several years, Florida lawmakers have introduced legislation that would amend this law and make it easier for debtors to keep their driving privileges, but the laws have not been passed.

How Bankruptcy Can Help 

As long as the debts for which there is a judgment against you are dischargeable (generally, credit card debt, personal loan debt, mortgage debt, and more), having your debts discharged in a personal bankruptcy case can allow you to take steps to have your driver’s license reinstated.

If your license has not yet been suspended but you have been sued by a creditor, or there is a pending judgment against you, filing for bankruptcy can also prevent any debt collection actions, and you may be able to avoid having your driver’s license suspended. You should reach out immediately to a bankruptcy lawyer in South Florida who can assist you.

Contact Our West Palm Beach Bankruptcy Lawyers Today 

Was your driver’s license suspended because a creditor obtained a judgment against you for unpaid debt? You may be able to get your driver’s license back by filing for bankruptcy and receiving a discharge of eligible debts. It is important to keep in mind that some debts — including family support debt, and certain tax debts — are not dischargeable in a bankruptcy case. Accordingly, while you will not be able to have your license reinstated after a suspension due to unpaid child support, for example, by filing for bankruptcy, bankruptcy may be able to help with license suspensions for other types of debt. To find out more about your options, you should contact one of the experienced West Palm Beach bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller today.

Sources:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0300-0399/0324/Sections/0324.121.html

floridapolitics.com/archives/589256-mike-beltran-files-bill-to-end-debt-based-drivers-license-suspensions-ease-fine-payment/