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  1. #1
    Join Date
    Jun 2008
    Posts
    1

    Default Can You File Bankruptcy on a Civil Judgment That Suspended Your Driver

    My question involves bankruptcy in the state of: Alabama

    My driver's license has been suspended because I was involved in a car accident and my insurance had lapsed, and I was unaware of it at the time of the accident. Can I file Chapter 7 bankruptcy because the amount is $16,000 and be able to get my driver's license back?

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Can You File Bankruptcy on a Civil Judgment That Suspended Your Driver

    A bankruptcy in most cases can release or prevent a license suspension for an auto accident money judgment. Bankruptcy will not lift suspensions for traffic, criminal, or driving while intoxicated offenses.

    You need to talk to a bankruptcy attorney.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can You File Bankruptcy on a Civil Judgment That Suspended Your Driver

    The statute does not specifically address bankruptcy. Some states do, usually stating that bankruptcy does not affect the suspension. I suspect that in the absence of such a provision a bankruptcy discharge should remove the suspension, but as Betty3 indicates your best bet is to consult a bankruptcy lawyer (you should be able to find one who gives a free consultation) and find out what your state's government is doing in these cases.
    Quote Quoting Alabama Code Section 32-7-16 - Payments sufficient to satisfy requirements
    Judgments herein referred to shall, for the purpose of this chapter only, be deemed satisfied:
    (1) When $20,000.00 has been credited upon any judgment or judgments rendered in excess of that amount because of bodily injury to or death of one person as the result of any one accident;

    (2) When, subject to such limit of $20,000.00 because of bodily injury to or death of one person, the sum of $40,000.00 has been credited upon any judgment or judgments rendered in excess of that amount because of bodily injury to or death of two or more persons as the result of any one accident; or

    (3) When $10,000.00 has been credited upon any judgment or judgments rendered in excess of that amount because of injury to or destruction of property of others as a result of any one accident. Payments made in settlement of any claims because of bodily injury, death or property damage arising from a motor vehicle accident shall be credited in reduction of the amounts provided for in this section.

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