Can Creditors Take Away My Drivers License?

If you have ever had to deal with collections agencies, you know they’ll stop at nothing to get to you, even if means calling family members, friends, your employer, or making threats they can’t carry out. Most people in America rely on a car and the ability to drive it legally to get to work each day, so if a creditor or collections agency calls you and says they can get your driver’s license taken away if you don’t pay, that’s a problem. But is that an empty threat or something they can make happen?

The answer is kind of a “yes” for certain limited things. For instance, if you have an uninsured accident, the insurance company of the other party can have your license suspended. Also, you can have your license suspended for unpaid traffic tickets.

However, other creditors for other matters cannot suspend your license for failing to pay credit card and medical bills.

In Washington State, your license can be suspended for nonpayment of traffic fines or tickets. That suspension will remain in place until everything is collected for fines, fees, and even the interest owed to the collection agency, and that can add up fast. If you owe auto insurance, your insurer can suspend your coverage and that will make illegal to drive. And in Washington, driving with a suspended license is no joke—it carries a penalty of 90 days in jail or a $1,000 fine.

Here is the good news for most people: If you file a Chapter 13 case and make a plan to pay off traffic tickets, you can either get your license back or prevent it from being suspended in the first place.

Over the past 32 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situations. We can stop your garnishment and change your monthly payments for all your combined unsecured debt, and if you have had more than $600 garnished within the last 90 days, we can get all of the money back in most cases. But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.