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Bankruptcy May Help With a Driver License Problem Related to Unpaid Debt

Published March 11, 2014 by Sasser Law Firm

In North Carolina and many other states, driving without proof of insurance and not paying traffic violation fines can lead to a suspended drivers license.

Perez v. Campbell, a 1971 case decided by the U.S. Supreme Court, stated that if the debt underlying the suspensions of the license was discharged in bankruptcy, then license reinstatement could not be denied if all other requirements were met. The court held that the alternative would frustrate one of the main purposes of the Bankruptcy act, to give debtors a “new opportunity in life and a clear field for future efforts, unhampered by the pressure and discouragement of preexisting debt.” LocalLoan Co. v. Hunt, 292 U.S. 234, 292 U.S. 244 (1934). Perez v. Campbell, 402 U.S. 637 (1971).

If you or someone you know live in the Raleigh area and have lost their driver license as a penalty, contact Sasser Law Firm to set up a free consultation to discuss your options.

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