Bankruptcy May Help With a Driver License Problem Related to Unpaid Debt
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.
- About the Author
- Latest Posts
For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
