Release of Driver's License

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 All DMV state agencies that I know of have chosen to get the hold withdrawn immediately after filing because, I believe, it is less work for the agency, and they don't have to keep up with possible developments in your BK case all the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.

For more information on bankruptcy visit the Bills.com Bankruptcy Advice page.

I wish you the best of luck in resolving this problem.

I hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

bills.com

10 Comments

aalan landers, Jul, 2011
I discharged a debt off on my Birth Certificate through state collections. My drivers license is suspended. The debt had the case number on it. They discharged the money part of it. Shouldn't the license suspension be discharged also? When they accept for value it takes you from the debtor to the creditor. It bill of exchange was notarized and sent certified mail and signed for by an agent of the state.
BBill Admin, Jul, 2011
Consult with a lawyer in your state who has consumer law experience to learn if you completed all of the steps necessary to restore your privilege to drive.
aalan landers, Jul, 2011
Thank You. The problem with that is attorney's are "officers of the court" and can't help you. I've talked with an attorney who is a friend and he told me that as a friend. Thanks Again
BBill Admin, Jul, 2011
Maybe you can get some assitance by contacting your elected state representatives.
aalan landers, Jul, 2011
Thank You. I've got a case with Chase Bank going on a year and and six months where my debit card got stolen. Still no action. I just looked up some more things and I think I've a possible answer. Thank You for you're time and help. Alan
BBill Admin, Jul, 2011
You're welcome. Please report back if your answer proves to be correct and you feel that sharing it will help other readers.
BBarbara Gonzalez, Feb, 2011
I have a suspended license due to a judgment that I could not finish paying because I lost my job. Now my license is suspended and I have to drive to work and my children to school. What do I have to do to have a valid driver's license immediately?
BBill Admin, Feb, 2011
Each state legislature created different rules for 1) allowing a driver's license suspension for non-payment of debt, and 2) reinstating a license. Consult with the Web site for your state's DMV to learn the reinstatement rules for your state. Alternatively, consult with an attorney in your state who has experience in consumer law.
BBill, Dec, 2009
You did not mention what state you reside in so it is impossible for me to offer any observations regarding your rights and options under your state's laws. Therefore, the first thing I recommend is you contact your county bar association and ask for the name of the local legal aid society that assists low- and no-income people with legal issues. Make an appointment with a paralegal or lawyer at the legal aid society and bring all of the documentation regarding your debt and the seizure of your driver's license to that meeting. Learn what your rights are in your state for a) resolving the debt, and b) reinstating your license.

Second, consider a peer-to-peer loan. Contact Prosper or Lending Club to learn more about this option.

Third, make a contingency plan for commuting to work. You may be able to take public transportation or pay for the gasoline of a coworker with whom you share a ride.

Fourth, make a household budget and devise a strategy for paying your debts so that you do not get into this situation again. (See the Bills.com budget guide.)

Finally, do not even think about doing business with a payday lender.
AApril Pearl, Dec, 2009
i have a suspended license due to my inability to completly pay off my collections agency. i need to have help with paying them off in full while making payments to someone else.i can afford payments if i can have a valid license to get to my job. its a big problem. my son and i might have no place to live if i dont get help fast.