Re: drivers license reinstatement

Yes....bankruptcy will discharge this debt however it should not be filed for casually. You must consider all aspects of the filing including the fact that you will be unable to obtain credit for an extended period and cannot file for bankruptcy again for at least 7 years. The filing of a bankruptcy may be considered by a potential employer in determining your character and could keep you from getting "the" job you want.

Chapter 7: Often called a "liquidation," this type of bankruptcy lets you completely wipe out all unsecured debts like credit card debts, lines of credit, unsecured loans, the debt for the damage as a result of your accident, etc. The downside is, you are only allowed to keep $1,000.00 in personal assets and an additional $1,000.00 in equity in a vehicle. Any additional assets will be used to pay your creditors. Note: Congress and the President are seriously considering severely limiting Chapter 7

protection.)

Chapter 13: This type of bankruptcy is a reorganization, which allows you to keep your assets and repay your creditors a portion of what you owe over a three to five year period. It might be 10 cents on the dollar or substantially more, depending upon the circumstances. A corporation cannot file a Chapter 13; only individuals, sole proprietorships and partnerships can. Corporation would file a Chapter 11 which is very similar in nature.

I strongly suggest that you meet with a competent bankruptcy attorney to review your financial situation.

Scott R. Jay, Esq. 305-249-8000

Re: drivers license reinstatement

Both Chapter 7 and 13 will allow re-instatement of your license. Chapter 13 will require a repayment of some sort to creditor. Chapter 7 will not and is a straight liquidation of debts.