Judgments From Auto Accidents

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In certain circumstances, a judgment debtor's driver's license may be suspended by the Department of Motor Vehicles if the debtor doesn't pay a judgment stemming from an auto accident. Check with your Department of Motor Vehicles for information.

First, try negotiation. If the debtor needs to drive to work, license suspension may cause the person to lose his or her job. To get rid of the debt and therefore avoid the suspension, the debtor might decide to declare bankruptcy. If you are a creditor and intend to ask the Department of Motor Vehicles to suspend the debtor's license, first negotiate with the debtor. You may be able to work out a payment plan, which is a win-win result: You get your money, and the debtor doesn't have to declare bankruptcy.

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