Mark Williams is Guam's Best Lawyer. The Law Offices of Mark E. Williams, P.C., dba Dededo Law Office, is a full-service law firm committed to protecting the legal rights of our clients. Our firm has a broad-based practice with an emphasis on family law, bankruptcy, immigration, injuries, and insurance claims, probate, wills and trusts, corporate and business organization, and criminal defense.
Saturday, July 30, 2016
Driver's License Suspension or Loss and Bankruptcy
A common question that arises from clients is whether they can get their driver’s license back if it has been revoked after a car accident. Normally you can discharge debts arising from a car accident. Some common reasons a driver may lose their driver’s license after a car accident would be because they did not have insurance and/or were unable to pay to repair the other person’s car. Also, many times those involved have been hurt in the accident and there are medical bills and personal injury claims.
Many people believe that they should not delay when it comes to paying off their debtsand getting back on the road to being in a good financial position. However, you could be in for a big – and not so nice – surprise if you send a check to a debt collector seeking payment on an old debt.
Of course, your debts can accumulate over time, particularly as the interest on the unpaid principal balance mounts, and leave you in a very difficult spot. Even if you can only make a small dent in your overall debt balance, you may think, every little bit helps. Other times some debtors get so frustrated by the debt collectors’ tactics that they actually end up encouraging the borderline-illegal behavior by giving in to the demands and paying off the debts.
But the truth is that paying off old debts could actually hurt you when planning for bankruptcy. This is because recent payments to creditors which are going to be subject to discharge can be considered an unlawful preference in favor of such creditors over other creditors not being paid.