Legal Question in Traffic Law in California

Can they really take my license forever?

On December 14th, 2001 I was in a two car accident. I did not have car insurance. I was found to be at fault. I didn�t agree, but paid the fines (fault and no insurance) to the sheriffs office, and notified the dmv which got my license suspended for a year (for the lack of insurance).

I told her insurance company that I A) had no car insurance, and B) have no assets (the only one I had was the car, and it was totally destroyed). I haven't heard anything in four months.

Three days ago I got a call from a representative of a company that her insurance turned my account over to (collections?) who informed me that I needed to pay $12,000 (the amount they paid for the damage to her car) in one lump sum or they can pursuade the dmv to extend my suspension to either 10 years or permanently revoke my license. He told me that even if I file bankruptcy, I will no longer owe the money, but I will never drive again. And I had three days to call him back to tell him what I was going to do.

What are their REAL options? Can they insist that my license be suspended longer? forever? What are my options?


Asked on 5/23/02, 4:28 pm

1 Answer from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Can they really take my license forever?

Thank you for your posted question, and I am sorry to hear about your accident. Unfortunately, collection agencies often stretch the truth in an effort to scare you, and thus receive money from you.

Here is the straight scoop on how this works -- if you have caused an accident and do not have insurance, the other side may sue you. If they prove their case, either by a default win, or at trial, they are entitled to have the judgement filed with the DMV, which suspends it (the license) until it (the judgment) is paid in full.

A judgment may be renewed every ten years.

A bankruptcy does release the liability for the debt, whether before or after a judgment. That, in turn, releases your license suspension from the DMV. It acts like magic for some clients how we can file a simple bankruptcy, and not only get rid of the debt, but get their license back.

HOWEVER, if you have a judgment, as mentioned, it can be renewed every 10 years, so if you have opposing counsel with a good memory or good computer system, they may renew it and you may find yourself back in the situation in the future, either having to file bankruptcy (which will be more difficult in the future), or having to pay the judgment 10 years from now. If you can, file BK now, and don't wait until a judgment.

I hope this helps -- but if you have any questions at all, I'm happy to help -- just email me directly or call my office, toll free, at 1-877-568-2977.

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Answered on 5/29/02, 7:44 pm


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