Reinstating a Driver’s License Through Bankruptcy

A drivers license can be reinstated by filing for bankruptcy in Indiana (and most other states) in certain situations. If your license has been revoked in Indiana for “financial responsibility” requirements, you may be able to have your license reinstated by filing for bankruptcy.   The bankruptcy filing will take away your “financial responsibility” for the auto-accident, allowing you to reinstate your driver’s license. 

Bankruptcy can Reinstate Your License After an Uninsured Accident

If your license was revoked because you did not have insurance during an accident, then you may be able to reinstate your license by filing for bankruptcy in Indiana.  Indiana requires all drivers to have a certain minimum coverage insurance protecting other parties in the event of an accident.  If you did not have insurance during the time of your accident, then you will be “financially responsible” for the accident’s losses.  If you do not pay for these accident losses within a reasonable time, the State of Indiana will revoke your driver’s license.

When you file for Chapter 7 bankruptcy in Indiana, this “financial responsibility” requirement is dropped.  Because you are no longer legally responsible for the debt due to a bankruptcy filing, your license can be reinstated.  To have your license reinstated, you are required to show the BMV proof that you have filed bankruptcy.   You must also show the BMV that you have included your “financial responsibility” creditors in your schedule of debts.  The BMV in Indiana can be reached online and through the BMV reinstatement phone number.  

Bankruptcy cannot reinstate your license in every situation

Bankruptcy cannot always reinstate your driver’s license.  Reinstatement depends on the situation. In situations where your license was revoked for criminal matters or excessive tickets, it is unlikely that bankruptcy will have any effect on the situation.   In such situations, you may need to arrange a hearing to determine the requirements for the reinstatement of your license.  In addition, you may be able to seek special driving privileges under a state court petition.   The advice and help of a lawyer who focuses on license reinstatement may be the best first step toward getting your license back.  

If you have lost your license due to a lack of insurance or other unfortunate situations, it is important to do everything you can to “get legal” again.  Driving illegally can quickly create a much larger mass of tickets and criminal infractions that can make it very difficult to ever get your license back in the future.  If you are driving illegally, you need to think twice.  You are breaking the law.  Contact an attorney, the proper administrative channels, or an insurance agent to do whatever needs to be done to make sure you are “legal” before you get behind the wheel again.