Has Your Driver’s License Been Suspended For Too Many Parking Tickets? Filing For Bankruptcy Can Help

Driving in Chicago can be tricky, but parking in Chicago can be an absolute nightmare. Although the city is crowded and parking is limited, think twice before parking illegally because if you do you’ll likely end up with a hefty fine to pay. What’s more, if you end up accumulating too many unpaid parking tickets the DMV will suspend your driver’s license. This happens frequently in Chicago. However, if you are considering filing for bankruptcy it may be helpful to know that filing for Chapter 13 bankruptcy can help you get your driver’s license back.

Your Driver’s License Can Be Suspended For 10 Or More Unpaid Parking Tickets

According to the City of Chicago’s website, drivers with 10 or more unpaid parking tickets are issued a Notice of Impending Driver’s License Suspension (DLS). After a notice is issued the clock starts ticking. You must pay the amount due on the notice, along with any other outstanding parking fines, within 45 days. If you have not taken any action within this time frame, the city certifies your suspension. Generally, your driver’s license will not be reinstated until all of your outstanding ticket debt has been paid.

Filing For Bankruptcy Can Help Get Your Suspended License Back

If your driver’s license has been suspended due to unpaid parking fines, filing for Chapter 13 bankruptcy can allow you to reinstate your license. In fact, your license can be reinstated within days of filing for bankruptcy, and you will likely be eligible to repay your ticket debt at a lower percentage. In order to have your license reinstated you must contact the Secretary of State Driver’s Services Division so that they can make a notation in your file. This notation allows you to file an application to reinstate your license. However, reinstating your driver’s license isn’t the only parking ticket-related benefit available in association with a Chapter 13 filing, you will also be eligible to repay your parking debt via a payment plan.

Payment Plans

Generally, the city of Chicago will allow you to enter into a payment plan under which you are required to pay half of your outstanding balance down, and then pay the remainder over a 12-month period with 21 to 22 percent interest. However, proceed with caution because if you default on your payment plan then your driver’s license will be in jeopardy again.

While everyone’s case is slightly different, many people who find themselves deep in debt due to unpaid parking fines find that a payment plan associate with their bankruptcy filing is very beneficial. For example, in 10 percent of Chapter 13 bankruptcy cases someone who owes $5,000 in outstanding parking fines will only pay back $500 in total and will have 36 to 60 months in which to pay it, usually with 0 percent interest.

Contact Us for Legal Assistance

If you are in the Chicago area and are considering filing for bankruptcy, contact an experienced bankruptcy lawyer from the Bentz Holguin Law Firm, LLC at 312-647-2116. We can assist you throughout each step of the process.