Anyone who has had their driver’s license suspended because they were involved in an automobile accident without insurance coverage can obtain relief in the United States Bankruptcy Court. Judgments from financial responsibility suspensions are dischargeable in Chapter 7 bankruptcy proceedings as long as the judgment was not obtained as a result of operating a motor vehicle while legally intoxicated.
If a bankruptcy is not filed the individual must work out a payment arrangement with the other party and pay off the outstanding obligation before driving privileges can be restored. However, if the individual chooses to file bankruptcy, the obligation to the other party will be discharged and the individual’s license will be reinstated after the bankruptcy petition and schedules are presented to the Bureau of Motor Vehicles. (Weaver vs O’Grady, 350 F Supp 403, Southern District of Ohio, 1972, 33 Ohio Misc. 97, 62 Ohio Registrars Office).