Most states, including Nebraska, have financial responsibility laws that suspend a driver’s license if a person causes an accident and lacks insurance to fully pay the resulting damages.

Filing bankruptcy may allow a person to immediately reinstate their license in most cases, but there are special rules that apply.

• No alcohol or drugs contributed to the accident.
• The accident was not intentional.
• The license was not suspended for failure to pay child support.
• The license was not suspended as part of a criminal penalty or restitution.
• The license was not suspended for any other reason than a failure to pay money.

It is extremely important that the bankruptcy creditor list include notice to the Nebraska Department of Motor Vehicles, Financial Responsibility Division, and to the other parties involved in the auto accident.  Before the DMV will reinstate the license they will require proof of notice to the DMV and to the other drivers involved in the accident.  If a lawsuit resulted as a result of the damages, notice of the bankruptcy should be filed in that lawsuit as well.

Can I drive again right after filing bankruptcy?

No.  Before you can drive again you must receive a “Letter of Abeyance” from the DMV which allows you to drive until the bankruptcy is final.  It takes about a week after filing bankruptcy for the DMV to issue this letter. You will also be required to provide the DMV with proof of insurance.  Once the bankruptcy Discharge Order is entered at the end of the case, the DMV will issue a permanent license.