As a Houston, TX bankruptcy attorney law firm, we see people from all walks of life who need help getting a handle on their debt. Debt, after all, can have unintended effects on your life such as loss of property, failure to obtain new credit for major purchases, and can even cause you to lose your Texas driver’s license. People are often surprised when we explain to them that one of the benefits of filing for bankruptcy is that you can use the process to reinstate your driver’s license in many situations.
Reasons for Suspension
Reinstating your driver’s license using Texas bankruptcy law depends on why it was suspended in the first place. In general, bankruptcy can be used to clear up debts that caused your license to be suspended which include unpaid parking tickets and failure to pay a motor accident judgment while driving uninsured.
Bankruptcy and Parking Tickets
If your license was suspended due to failure to pay parking tickets, you can use Chapter 7 bankruptcy to have the license unsuspended during your bankruptcy process. At the conclusion of your Chapter 7 bankruptcy, you should be able to work out a payment plan to pay off the debt. Alternatively, you can use Chapter 13 bankruptcy to pay back the parking tickets over the three to five year period of your Chapter 13 repayment plan.
Bankruptcy and Driving Without Insurance
If you cause a traffic accident without insurance the other person or their insurance agency will likely sue you in order to obtain a judgment. If the other party is successful in obtaining a judgment against you and you fail to pay it, the state will suspend your license. By filing bankruptcy and receiving a discharge for that debt, you are no longer legally obligated to pay the debt and thus the reason for your suspended license is gone.
Contact a Texas Bankruptcy Attorney
If you have had your license suspended due to debt, contact a Houston Bankruptcy attorney right away. They can not only help get your license back but more importantly, wipe out other types of debt and save your property.