Immediately upon filing bankruptcy, your driver’s license suspension is eligible for reinstatement if it was suspended for an unpaid accident. Kentucky’s financial responsibility law says it only remains suspended until there is a judgment removal, stay or discharge. The minute you file bankruptcy, a federal court order called a stay issues. Read the following guide to understand how to get your Kentucky driver’s license back.
Kentucky Driver’s License Suspension for Unpaid Judgments and Bankruptcy
You will lose your license if you do not pay a judgment for an auto accident in Kentucky. Usually, the car insurance company for the injured person will report it upon non-payment. If the insurance company turns in a report the judgment for an unpaid auto accident you will have a suspended license and ineligible to drive until the judgment stays or discharges.
A stay of judgment, temporarily suspends collection when you file bankruptcy. Then, a bankruptcy discharge permanently stops the judgment. Your options are to pay the judgment, file a bankruptcy or lose the license. Usually, persons who lose their license due to an unpaid accident file for bankruptcy to reinstate the license. You reinstate your license through the Kentucky transportation cabinet.
You may file either Chapter 7 or Chapter 13. Your, Kentucky driver’s license reinstatement does not require that you pay anything back to the injured person. However, driver’s license reinstatements are not automatic. Instead, you must request reinstatement to the Department of Transportation.
Drunk Driving accidents do not discharge automatically in Chapter 7 or 13. The injured party must object to the discharge to prevent the debt from being discharged. If they don’t object, the drunk driving debt may be discharged anyway. The objecting party must prove the damages are due to drunk driving without a judgment stating that the debt is non-dischargeable.
Attacking the Judgment for the Driver’s License Suspensions
Only a judgment or order for restitution takes away the restricted license. However, you might want to make payments in an agreement to make payments for them not turning in a report. Then, after some time, the statute of limitations for an accident becomes effective. Releasing the judgment or order of satisfaction is also effective in getting your license back. If you win the lawsuit, there is no judgment.
However, they win the lawsuit if you don’t file an answer or appeal on time. A judgment is effective for 20 years and is renewable for an additional 20 years. An Order to Vacate or Dismiss is also effective to reinstate your restricted license. You need a certified or file-stamped copy of the order to submit to the Kentucky Department of Transportation along with proof of your identity and normally your old drivers license.
Finally, always remember, the first thing to do when someone sues you is contact a qualified attorney immediately. The address for the DOT is:
Kentucky Transportation Cabinet| Division of Driver Licensing
- 200 Mero Street
- Frankfort, KY 40622
- (502) 564-1257
Kentucky’s Financial Responsibility Law K.R.S.R.S. § 187.41K.R.S.R.S. § 187.420
Kentucky’s Financial Responsibility Law states that on receipt of an unpaid judgment, Cabinet will suspend the Kentucky driver’s license and registration of any person against whom the judgment was rendered in K.R.S. § 187.410. The license remains suspended until the judgment is stayed, satisfied, or discharged in K.R.S. § 187.420.
The Exception for Suspension for Non-payment of JudgmenK.R.S.R.S. § 187.410
(1) Upon receiving a certified copy of a judgment, Cabinet shall forthwith suspend (except as provided in KRS 187.440) the license and registration and the non-resident’s driving privileges of any person against whom such judgment was rendered.
(2) If the judgment creditor consents in writing, in such form as Cabinet, prescribes that the judgment debtor be allowed Kentucky Driver’s license and registration or non-resident’s driving privileges, the same may be permitted by Cabinet, in its discretion, for six (6) months from the date of such consent and after that until such consent is revoked in writing, notwithstanding default in the payment of such judgment, or of any instalments thereof prescribed in KRS 187.440.
Duration of Driver’s License Suspension K.R.S.R.S. § 187.420
Such suspended license in Kentucky, registration, and non-resident’s operating privilege shall (except as provided in KRS 187.440 remain so suspended and shall not be renewed, nor shall any such Kentucky Driver’s license or registration be after that issued in the name of such person, including any such person not previously licensed, unless and until every such judgment is stayed, satisfied or discharged.
F.A.Q.s:
F.A.Q.srelated to driver’s license suspension and getting a Kentucky driver’s license back include:
What are the Steps to Get Your Kentucky Driver’s License Back?
To get the driver’s license back, you will need to provide a copy of the judgment, which was the basis for losing the driver’s license. You will also need your old driver’s license and proof of your identity, such as a social security card, birth certificate, or passport, to smoothly process the reinstatement. Often the court clerk automatically sends the judgment to Frankfort, which revokes the driver’s license. If you file a copy of the bankruptcy discharge with the court, they will send it to Frankfort, which would unnecessarily slow down your reinstatement.
The attorney for any insurance company which paid the claim may send a copy of the judgment to Frankfort to revoke your suspended license. They will rarely send information for you to reinstate your license.
Can You Get Your Drivers License Reinstated Online in Kentucky?
Reinstating your driver’s license typically requires a 40-dollar reinstatement fee payable online or at a regional office. If you mail the application, they will only accept a certified check or money order made payable to the Kentucky State Treasurer. Refer to your suspension notice to see if you must pay the reinstatement fee. You may not have to pay this fee.
But can pay with a debit or credit card. You can call the Transportation Cabinet to process a credit card over the phone at 859-692-5834 or 502-564-1257. In addition, you will still need your old driver’s license and proof of your identity, such as a social security card, birth certificate, or passport, to smoothly process the reinstatement. Do not forget to provide the evidence that you have filed your bankruptcy to process the reinstatement.
How Long Does it Take to Get Your Driver’s License Back?
The worst mistake you can make is to follow the directions on getting your Kentucky driver’s license back, as stated in the advice from Frankfort. According to their recommendations, you should wait until you get a discharge and give a copy of the discharge from the court to the state court clerk. The state court clerk then forwards the discharge order and a copy of the judgment to Frankfort making your suspended license eligible for reinstatement. The statute is clear that you do not have to wait until the discharge.
The problem with that is waiting for the discharge takes four months in a Chapter 7. The statute to get your suspended license back is very clear. After the bankruptcy court grants a stay, you do not have to wait until the discharge to start this process. You don’t have to depend on the state court clerk to send these documents to the Department of Transportation.
Instead, you can directly forward the documents to a particular section of the Department of Transportation in Frankfort on the day you file bankruptcy. We suggest making the trip to the Department of Transportation offices in Frankfort to reinstate your suspended driver’s license.
You can also use the fax number for them, which is 502-564-3250. Any driver’s license division in the driver licensing office should be able to process the application. This particular division of the Department of Transportation in Frankfort does this exclusively and may be more efficent than a divisional office.
Get in Touch to Get Your Driver’s License Back!
If you want to file a bankruptcy to reinstate your driver’s license, see us about it. Chapter 7 will quickly and easily discharge most traffic accident debts. It is the cheapest method if you have an average or below-average income and a minor amount of assets. If you have other debt problems such as foreclosure, income tax debts, or student loan issues, Chapter 13 may be better for you. Regardless of your chosen method, we have been reinstating driver’s licenses through bankruptcy for over 30 years.
Resources for Bankruptcy
Louisville, Kentucky Bankruptcy Forms
Defending Against Kentucky Default Judgements
Kentucky Default Summary and Agreed Judgements
Kentucky Foreclosure Law Process
If you are facing bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office immediately to start the conversation—Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.
