I had car accident in Texas, with no insurance. Can bankruptcy help?

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
Posted on Feb 19, 2014

If you are in an at-fault car crash in Texas and don't have liability insurance to cover the damages, and a judgment is rendered against you and not paid, you can be subject to suspension of your Texas Driver's License.

Usually, to get your license back at that point, you must provide one of the following: (1) a notarized release (SR-11) showing the judgment has been satisfied or paid in full; (2) a court-approved installment agreement showing that you are on a payment plan; (3) a judgment creditor's consent to you having your license reinstated (SR-84); and you must have a Financial Responsibility Certificate (SR-22) if within two years from the date the judgment was rendered, and pay a reinstatement fee. Texas DPS web page.

You may be eligible for an occupational license if you have had your Texas driver's license suspended or revoked. Or, if it has been more than 10 years since the judgment, and it has not been renewed, you can pay a fee and get your license reinstated.

But if you are being sued for an auto accident, you didn't have insurance and you want to avoid having your Texas driver's license suspended, or if you have an auto accident judgment against you and you can't pay it, and need your license back, you may want to consider filing bankruptcy.

If you file bankruptcy, either chapter 7 or chapter 13, and you otherwise qualify, the uninsured claim for damages against you can be discharged or canceled in bankruptcy without paying it, and you can get your Texas Driver's license back by having proof of insurance (SR-22) and paying a reinstatement fee. The exception to this if the judgment is not dischargeable in bankruptcy, such as if you were Driving While Intoxicated or DWI when you had the accident.

Your Texas driving privileges are very valuable. And don't drive without a license, it is an even bigger mistake.

If you want to see if our law office can help, call our office at 713-772-8037 and make an appointment to visit with us about the possibility of filing a bankruptcy, either to stop your Texas driving license from being suspended, or to get it back if it is already suspended.

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