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How to Reinstate Suspended License in Illinois with Debt Relief through Bankruptcy

How to Reinstate Suspended License in Illinois with Debt Relief through Bankruptcy

Many people don’t know this, but you can reinstate your driver’s license using debt relief through bankruptcy.  Filing either a Chapter 7 or Chapter 13 bankruptcy allows the debtor to go into a Driver’s Service Center and fill out an application to reinstate the driver’s license.  The cost is $72 (as amended).  Many people have suspended driver’s licenses because of unpaid parking tickets, unpaid penalties, unpaid judgments that involve a driving related incident such as personal injury or damage to another motor vehicle.

How to Reinstate Suspended License in Illinois with Debt Relief through Chapter 7 Bankruptcy

If you file a Chapter 7 Bankruptcy you should be able to apply for a reinstatement of your driver’s license within 7 days of the filing.  You must notice the Secretary of State, Driver’s Services Division in Springfield to ensure that notice has been received by the Secretary of State.  Once the Secretary of State receives the bankruptcy notice, they flag it in their system.  This flag allows you to file your application to reinstate your driver’s license.  The typical cost for reinstating your license is $72 and can be applied for at any Driver’s Services Facilities.  The actual penalty such as a parking ticket or other levied fine or penalty may not be discharged in the bankruptcy, but the filing of the bankruptcy typically allows for reasonable payment plans to be set up.  In the case of the City of Chicago, oftentimes, payment plans are not offered in a reasonable or affordable fashion without the bankruptcy filing.  In the case of a personal injury judgment or judgement based upon damage to property or another automobile, this type of debt is typically discharged and is eliminated as a personal liability and no longer will cause your driver’s license to be suspended.

How to Reinstate Suspended License in Illinois with Debt Relief through Chapter 13 Bankruptcy

if you file a Chapter 13 Bankruptcy you should be able to apply for a reinstatement of your driver’s license within 7 days of the filing.  Just as with a Chapter 7 Bankruptcy, you must notice the Secretary of State, Driver’s Services Division in Springfield to ensure that notice has been received by the Secretary of State.  Once the Secretary of State receives the bankruptcy notice, they flag it in their system.  This flag allows you to file your application to reinstate your driver’s license.  The typical cost for reinstating your license is $72 and can be applied for at any Driver’s Services Facilities.   The actual fine, penalty or liability is discharged.  This is a big difference with Chapter 7.  Typically, a debtor will pay only 10 cents on the dollar for the unpaid parking tickets or other type of fine or levy.  Also, as with a Chapter 7, the judgement due to personal injury or damage to property is discharged.  Chapter 13 is only referred to as the “total solution” for parking tickets and is used extensively by taxi cab operators, Uber and Lyft Drivers and others to eliminate substantial parking ticket liability.

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