Filing for bankruptcy protection can often improve many bad situations. It stops creditors from calling, suing, garnishing wages, and making any effort to collect on a debt without permission from the bankruptcy court. It can also often improve a situation where an Alabama driver’s license has been suspended for costs from a car accident or fines and penalties for moving violations. Allowing your license to remain suspended often causes other financial stress such as inability to travel for medical help or even to work. The Sellers Law Firm’s Montgomery, Selma, and Central Alabama bankruptcy attorneys can help you in these situations.
Alabama law generally favors the victim in a motor vehicle accident, but filing a Chapter 13 or Chapter 7 bankruptcy can help level the situation if you were found to be at fault in a car accident and did not have insurance coverage at the time of the accident. So, this is how it works. You need to travel for work, medical issues, and/or emergency situations. Often due to the lack of public transportation or the lack and expense of taxis, you find that you must drive while not having insurance. Then you have the bad luck of being involved in an accident and you are considered at fault in the accident. If you fail to pay for the accident damages, then the other person or their insurance company can sue you. If their suit is successful and they obtain a judgement from a court that states the amount of money you owe the person, then the person can have your license suspended by the Alabama Law Enforcement Agency. You will be notified that your license is suspended and if caught driving after that you could face additional fines and penalties.
Bankruptcy can either prevent you from having your license suspended or allow you to regain your license while you work through a Chapter 13 or Chapter 7 bankruptcy plan in some situations. The US Supreme Court stated that bankruptcy protections would override the state law that allows an uninsured motorist’s license to be suspended for failure to pay for damages from a motor vehicle accident. To stop the suspension of your license you would need to file for either Chapter 7 or Chapter 13 bankruptcy before you are sued for damages from an accident. As soon as you file either bankruptcy what is known as the automatic stay goes into place. The automatic stay stops any creditor from trying to collect on a debt without permission from the bankruptcy court. This means you can stop the other person in the accident or their insurance company for continuing on in the lawsuit and getting a judgment against you and the license suspension will not be able to go into places. If a judgment has already been granted and your license suspended, then the automatic stay can allow you to have your license re-issued if you file for bankruptcy protection. Once you file a Chapter 13 or Chapter 7 you would need to provide evidence of filing to the Alabama Law Enforcement Agency in order to have your driver’s licensee reinstated. Of course, there are always exceptions to general issues in law and the Montgomery, Selma, and Central Alabama bankruptcy attorneys at The Sellers Law Firm can guide you through theses exceptions. If you need help, just use the Contact Form on our website, or call or text us right now at 334-LAWYERS (529-9377)! Its always free to meet with us!
The first exception is that if your license is suspended for having to many moving violations or failing to pay fines and court costs then those expenses cannot be discharged in a Chapter 7 or Chapter 13 bankruptcy. However, under a Chapter 13, where a debtor pays for certain debts with monthly payments for 3 to 5 years, you can propose to pay for those fines and court costs in that monthly payment. Also, if you deliberately or maliciously injured someone in the motor vehicle accident then the debt is not dischargeable. The last major exception is that if you are found guilty of driving under the influence when the accident occurred then the debt from the accident cannot be discharged. But, even if the fines and vehicle accident expenses are not dischargeable, being freed up from paying other debt by bankruptcy protection can often allow you to pay for these expenses.
At The Sellers Law Firm, our Montgomery, Selma, and Central Alabama bankruptcy attorneys are here to help you. We have offices located in Montgomery, Selma, Greenville, and Troy. When you meet with us, we will help you develop a plan of action to resolve your financial issues. All consultations are free, and we can usually meet with you within 24 hours! You can call or text us at 334-LAWYERS (529-9377) or you may use the Contact Form on this website. Our phone are answered 24 hours a day! You may also contact us by email. Remember that doing nothing changes nothing so act now!
The Sellers Law Firm is designated a debt relief agency by an Act of Congress and the President of the United States. We have proudly assisted people seeking relief under the U.S. Bankruptcy Code for four decades.