At Walker & Walker, we take pride in protecting our clients’ rights, especially when they are vulnerable. Recently, we achieved a significant victory for one of our clients by ensuring their driver’s license was reinstated. Here’s how we leveraged the power of the automatic stay under 11 U.S. Code § 362 to achieve this result.
BACKGROUND OF THE CASE
Our client found himself in a difficult situation. As part of his financial struggles, his driver’s license had been suspended as the result of a civil judgment. This created additional hardship, impacting his ability to commute to work, attend important appointments, and manage his day-to-day responsibilities.
THE LEGAL FOUNDATION: AUTOMATIC STAY
When our client filed for bankruptcy, an automatic stay was immediately imposed under 11 U.S. Code § 362. This stay is a powerful tool designed to halt all collection activities by creditors, including government entities. It provides debtors with a temporary reprieve from collection efforts, giving them the necessary breathing room to reorganize their finances.
However, despite the automatic stay being in effect, the Minnesota Department of Vehicles Services had not reinstated our client’s driver’s license. This failure to act was not only a bureaucratic oversight but also a violation of federal law.
OUR FIRM’S APPROACH
Understanding the gravity of the situation, we took immediate action. Here’s a step-by-step overview of how we resolved the issue:
- Research and Documentation: We thoroughly reviewed the relevant provisions of the Bankruptcy Code and gathered all necessary documentation related to our client’s bankruptcy filing and the automatic stay.
- Formal Notice to the DVS: We drafted a formal letter to the Minnesota DVS, outlining the violation of the automatic stay. In the letter, we clearly stated that the failure to reinstate our client’s driver’s license constituted a breach of 11 U.S. Code § 362.
- Demand for Immediate Action: We demanded the immediate reinstatement of our client’s driver’s license within 5 business days. We highlighted the potential legal consequences of non-compliance, including actual damages, costs, attorneys’ fees, and punitive damages.
- Firm Stance on Legal Action: To ensure our demand was taken seriously, we informed the DVS that we were prepared to pursue legal action to enforce our client’s rights if the issue was not resolved promptly.
THE OUTCOME
Our firm’s decisive action yielded swift results. The Minnesota DVS responded within hours to our letter and immediately reinstated our client’s driver’s license. This allowed our client to resume driving his vehicle without further disruption.
CONCLUSION
This case underscores the importance of understanding and enforcing the automatic stay provision under the Bankruptcy Code. At Walker & Walker, we are committed to protecting our clients’ rights and ensuring that they receive the full benefits of the legal protections available to them.
If you or someone you know is facing similar challenges, don’t hesitate to reach out to us. Our experienced team is here to provide the support and legal expertise you need to navigate through these difficult times.
