Release of Driver's License
I filed bankruptcy because I had a hold on my license. Can I get the hold off before the bankruptcy goes through?
I have filed bankruptcy on April 1st because I had a hold on my license and couldn't get it off until I either paid or filed. I was wondering if there is a way that I can get the hold off before the bankruptcy actually goes through which can take up to 3-4 months?
Since you already filed for bankruptcy protection, I assume you retained an attorney to represent you. Consult with your bankruptcy attorney regarding your question about the license hold and when it will be released. The timing of the release upon a bankruptcy filing is largely a matter of the local or state policy and has little to do with the bankruptcy law itself. As such, there is no one better to answer your question definitively than one who is experienced practicing bankruptcy law in your area and who is familiar with your state and local procedures. Since you paid your attorney to represent you in this case, why not take advantage of a needful service you already paid for?
I can offer my opinion without considering your state law's effect on the answer.
Most state agencies regulating driver's licenses release all holds over the issuance of licenses when the case is filed. They seem to like to deal with the hold at the beginning of the case because of the automatic stay. A very broad reading of the effect of the stay would prohibit adverse actions against a debtor under a BK chapter or continuation of an adverse ruling after the filing. The question might come up as to whether the case will proceed to discharge. It could be argued that the adverse action will continue until the case is discharged and final, since some debtors may file simply to get the hold off the license and then dismiss the case after the license is issued. All DMV state agencies that I know of have chosen to get the hold withdrawn immediately after filing because, I believe, it is less work for the agency, and they don't have to keep up with possible developments in your BK case all the time discharge is pending. Keeping up with several thousand cases could be a large commitment of resources by the agency that is really not their core business. If you or your attorney calls the licensure department, they usually have a letter they can mail or fax to you advising that the hold is now lifted as of the date the BK case was filed.
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I wish you the best of luck in resolving this problem.
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