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Suspended License due to Judgment in MI

Suspended License due to Judgment in MI

A judgment is a decision in a lawsuit that comes in the form of a court order. If a judgment is entered against you, a creditor or debt collector can garnish your wages, bank account, or tax refund, as well as seize your property.

In Michigan, an unsatisfied judgment can also result in driver’s license suspension, especially if the lawsuit involves the ownership, use, or maintenance of a motor vehicle. Under MCL 257.511, if a person fails to satisfy a judgment within 30 days and your court record of the judgment is forwarded to the Michigan Secretary of State, the Secretary of State may then suspend your license.

Upon receiving your judgment, the Michigan Secretary of State will send you a letter, giving you 30 days from the date you receive the letter before your driver’s license is suspended. Until you reach an installment payment agreement, and you file proof of financial responsibility or pay the judgment, your license will remain suspended.

If you drive with a suspended license in Michigan, a first offense is punishable by a maximum jail sentence of 90 days and/or a fine of no more than $500. A second or subsequent conviction carries a jail term of up to one (1) year and/or a maximum fine of $1,000. Furthermore, getting convicted of driving with a suspended license will lead to your license plates being confiscated and your vehicle impounded for at least 30 days.

Fortunately, filing for bankruptcy—whether it’s Chapter 7 or Chapter 13—will eliminate the underlying debt from the judgment against you. If you file for bankruptcy before your driver’s license is suspended, the Michigan Secretary of State will either not suspend your license or reinstate it. If you file for bankruptcy after your license is suspended, you may have to pay reinstatement fees to the Secretary of State’s office.

If you are interested in filing for bankruptcy in Michigan, contact Hensel Law Office, PLLC today at (888) 258-0651 to learn if bankruptcy will work for you. Assisting debtors throughout the state since 1999.


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