It can be frustrating when your license becomes suspended for failure to pay debts owed to the city or local government. In some states, such as Washington state, a debtors drivers license can be suspended for failure to pay such fines. If you are in a predicament in which your license has been suspended due to unpaid parking fines or tickets you should consider speaking to Seattle bankruptcy lawyers in order to learn about what options may be available to you. Generally when somebody is attempting to get relief from their debts they have three options, file chapter 7 bankruptcy, file chapter 13 bankruptcy or attempt to settle their debts with the creditor.
If you are attempting to get your license back due to a suspension regarding unpaid debt, then any Seattle bankruptcy lawyer will tell you that filing chapter 7 bankruptcy probably won’t be much of a help to you. This is because the debt owed to the city or government is considered a priority debt which means that it must be paid in full, even if you file for bankruptcy. This also means that attempting to settle your debt with this collection companies will most likely fail because they know you have to pay the full amount no matter what. This leaves you with the option of filing for chapter 13 bankruptcy. A chapter 13 bankruptcy requires a debtor to make payments every month based on their disposable income and how much secured and priority debts that must be paid back. Payments can be extended for up to a 5 year period. When a chapter 13 bankruptcy is filed, the DMV will most likely allow a debtor to get their license back because in essence they are now entering into a binding repayment plan and the government knows that they are going to eventually going to get paid. If a debtor loses their job or fails to make payments I would imagine that the license would once again be revoked for failure to pay on the priority debts.