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Can filing for Bankruptcy reinstate my driver’s license that was suspended for backed Child Support?
Not only can California county-based child support services department suspend your driver’s license, but also your business license and state issued professional license.
The State Licensing Match System is used to match paying parents who owe child support with business, professional, and driver’s licenses. These licenses include cosmetologist, contractor, doctor, teacher, attorney and more. This program denies licenses to paying parents (non-custodial parents) who owe past-due child support and apply for a license or renewal.
Chapter 13 Bankruptcy can reinstate your driver’s license or any of the above license through a payment plan to catch-up on the backed child support within 60 months. Once you file your Chapter 13 Bankruptcy and make timely Chapter 13 Bankruptcy monthly payments, child support services department will release the suspension on your driver’s license, business license, or professional license.
Chapter 7 Bankruptcy cannot reinstate your driver’s license suspended by backed child support because child support is a non-dischargeable debt. However, a Chapter 7 Bankruptcy can discharge your other debts, which will leave you more funds to make your child support payments and catch-up on the arrearages.
Of the 2 Bankruptcy Chapters, Chapter 13 Bankruptcy is the better choice because the suspension is released while you are making your Chapter 13 Bankruptcy plan payments on time. It will take you longer to reinstate your driver’s license through Chapter 7 Bankruptcy because child support is NOT dischargeable.