Can Bankruptcy help me get my driver’s license back?

In general, filing bankruptcy will not erase “points” from your driver's license or in any way restore your driving privileges if you lose it because of your bad driving habits. But what if your driver’s license is suspended because you’re in a car accident and don’t pay for the resulting damages? Under 75 Pa. CSA § 1772, the Pennsylvania Department of Transportation (PennDOT) has the authority to suspend or revoke a driver's license when an individual fails to satisfy a judgment arising from a motor vehicle accident. This statute can have severe consequences for individuals who are already facing financial hardship. 

When an individual files for bankruptcy, the automatic stay provision under 11 U.S.C. § 362 halts all collection activities, including the enforcement of judgments. This stay is intended to provide the debtor with a breathing spell, allowing them to reorganize their finances or discharge certain debts without the threat of immediate collection actions.

If a judgment related to a motor vehicle accident is discharged in bankruptcy, PennDOT cannot continue to suspend or revoke a driver's license based solely on the nonpayment of that judgment that has been discharged by bankruptcy.  The case of Henry v. Heyison, 4 B.R. 437 (Bankr. E.D. Pa. 1980) is a bankruptcy case from 1980 that confirms the protection afforded to debtors under bankruptcy law. In this case, the court held that Pennsylvania law, insofar as it imposed additional eligibility requirements for motor vehicle operating privileges based on the nonpayment of a judgment discharged in bankruptcy, unconstitutionally conflicted with the fresh start provision of the Bankruptcy Code.

While 75 Pa. CSA § 1772 provides the Commonwealth with the authority to revoke a driver's license for nonpayment of a judgment, this power is curtailed by federal bankruptcy law. Once a judgment is discharged in bankruptcy, PennDOT cannot continue to suspend or revoke a driver's license based on that debt. 

For those facing the threat of license suspension due to unpaid judgments, filing for bankruptcy may offer a path to relief. It is important to consult with a knowledgeable bankruptcy attorney to understand your rights and options under both state and federal law.