(1) SUSPENSION. Upon receipt of a certified
damage judgment from a Wisconsin court, the department shall immediately
suspend the judgment debtor's operating privilege and the registration of the
judgment debtor's motor vehicles. The suspension shall remain in effect until
the person meets the criteria of sub. (5), and until one of the following
conditions is met:
(a) The person files with
the department a certified or court stamped copy of a satisfaction of
judgment.
(b) The person files with
the department a court ordered installment payment schedule meeting the
requirements of s.
344.27, Stats.
Note: Section
128.21, Stats., voluntary
proceeding orders do not stay Ch. 344 license suspension or revocation actions,
and are therefore inadequate to resolve a damage judgment suspension or
revocation.
(c) The person
files with the department an installment agreement complying with sub.
(3).
(d) The person's suspension or
revocation is temporarily or permanently affected under sub. (4) because of a
bankruptcy.
(e) More than 20 years
from the entry date of the judgment have elapsed.
Note: See s.
893.40, Stats.
(f) If the judgment is for property damage,
the person files proof of payment of an amount equal to the property damage
minimum coverage level described in s.
Trans 100.02
(12m) to the judgment creditor, including
payments made in settlement or partial settlement of the property damage claim
or payments made to the court for application to the judgment. Payments on the
claim made by the judgment debtor, an insurance carrier, or any other person
may be aggregated to reach that amount.
Note: See the note following s.
Trans 100.18 (1)
(i).
(g) If the judgment is for injury to a single
person, the person files proof of payment of an amount equal to the single
injury minimum coverage level described in s.
Trans 100.02
(13m) to the judgment creditor, including
payments made in settlement or partial settlement of the injury claim or
payments made to the court for application to the judgment. Payments on the
claim made by the judgment debtor, an insurance carrier, or any other person
may be aggregated to reach that amount.
Note: See the note following s.
Trans 100.18 (1)
(i).
(h) If the judgment is for injury to more
than one person, the person files proof of payment of an amount equal to the
multiple injury minimum coverage level described in s.
Trans 100.02
(11m) to the judgment creditor, including
payments made in settlement or partial settlement of the injury claim or
payments made to the court for application to the judgment. Payments on the
claim made by the judgment debtor, an insurance carrier, or any other person
may be aggregated to reach that amount.
Note: See the note following s.
Trans 100.18 (1)
(i).
(i) If the judgment results from any
combination of property damage, injury to one person, or injury to more than
one person, the person files proof of payment of the amount applicable under
par. (f) plus the amount applicable under par. (g) or (h), whichever is
applicable, to the judgment creditor, including payments made in settlement or
partial settlement of the property damage or injury claims or payments made to
the court for application to the judgment. Payments on the judgment creditor's
claim made by the judgment debtor, an insurance carrier, or any other person
may be aggregated to reach the amount required to be paid prior to satisfaction
of the damage judgment for driver licensing purposes under this paragraph.
Note: Under s.
346.26(3),
Stats., a judgment is deemed "satisfied" to the extent that a person should be
able to reinstate their operating privilege once the person has paid a judgment
debtor an amount equal to the minimum required insurance amounts a person needs
to avoid operating privilege suspension under the safety responsibility law.
The actual judgment may not be partially satisfied to the same extent because
payment of interest, costs and attorneys fees all qualify as payment toward
this total dollar amount. Pars. (f), (g), and (h) address this means of
"satisfying" specific types of damage judgments for driver licensing purposes.
Par. (i) addresses situations where a debtor owes for both property damage and
personal injury and requires payment of up to $35,000 ($10,000 + $25,000) for
such an accident to property and one person or $60,000 ($10,000 + $50,000) for
damages to property and injuries to multiple persons as a precondition of
reinstatement. Of course, providing evidence that the entire judgment has been
satisfied with a court is also acceptable. Minimum mandatory insurance amounts
are set under s. 344.33(2),
Stats.
(1m)
RESUSPENSION. If a judgment debtor fails to comply with the payment terms of a
voluntary or court-ordered agreement under sub. (1)(b) or (c), upon notice of
the default, the secretary shall suspend the debtor's operating privilege. That
suspension shall remain in effect until the judgment debtor meets the
requirements of sub. (1)(a) to (i).
Note: The first sentence of this provision
provides that a person whose operating privilege is suspended for a damage
judgment may reinstate by paying off the judgment, entering into a voluntary
payment agreement with the judgment creditor, obtaining a court-ordered payment
plan, filing for bankruptcy, waiting 5 years, or paying the creditor an amount
equal to the insurance that would have been paid to the creditor had the
judgment debtor held insurance in the minimum mandatory insurance amounts
specified in 344.33 (2), Stats. This provision permits more than one
debtor-creditor agreed or judicially ordered payment plan under s.
344.25 or
344.27, Stats.
(2) OUT-OF-STATE AND TRIBAL COURT JUDGMENTS.
(a)
Out-of-state judgments against
Wisconsin drivers. Upon receipt of a certified damage judgment naming
a Wisconsin resident or licensed operator as judgment debtor from a court or
driver licensing authority in another jurisdiction, the department shall
provide notice of the receipt of the certification to the judgment debtor. The
department shall suspend the operating privilege and motor vehicle
registrations of the judgment debtor unless, within 30 days of the issuance of
the notice by the department, the person satisfies one of the requirements of
sub. (1)(a) to (i) or, files a letter of clearance or other proof of license
reinstatement in that other state from the driver licensing authority in the
other jurisdiction.
Note: See s.
344.25(5),
Stats.
(am)
Out-of-state judgments against drivers moving to Wisconsin from another
state. If a judgment debtor's operating privilege is suspended or
revoked in another state for nonpayment of a judgment before the debtor obtains
a Wisconsin driver license, the judgment debtor may not be licensed in
Wisconsin until the debtor reinstates his or her operating privilege in that
other state. If another state provides notice to Wisconsin of entry of a damage
judgment in that other state which may result in suspension for nonpayment of
the judgment in Wisconsin under s.
344.25(5),
Stats., the department shall provide notice of the receipt of the certification
to the judgment debtor. The department shall suspend the operating privilege
and motor vehicle registrations of the judgment debtor unless, within 30 days
of the issuance of the notice by the department, the person satisfies one of
the requirements of sub. (1)(a) to (i), or files a letter of clearance or other
proof of license reinstatement in that other state from the driver licensing
authority in the other jurisdiction.
Note: Where notice of a judgment debt is sent to
the Department by a licensing authority in another state, obtaining a release
letter may be required as a precondition to obtaining or keeping a Wisconsin
driver license. If the judgment debtor has moved to Wisconsin from the other
state, the Department is prohibited from issuing the person a license if the
person's operating privilege is suspended or revoked in the other state. s.
343.38(4),
Stats. If the person has been issued a license, it will be cancelled. s.
343.25, Stats.
(b)
Tribal judgments. Upon
receipt of a certified damage judgment naming a Wisconsin resident or licensed
driver as judgment debtor from an American Indian tribal court in Wisconsin,
the department shall provide notice of the receipt of the certification to the
judgment debtor. The department shall suspend the operating privilege and motor
vehicle registrations of the judgment debtor unless, within 30 days of the
issuance of the notice by the department, the person satisfies one of the
requirements of sub. (1)(a) to (i).
(c)
Period of suspension. If
a judgment debtor's operating privilege or vehicle registration is suspended
because of non-payment of an out-of-state or tribal judgment, the person's
operating privilege or vehicle registration shall remain suspended until the
person meets the criteria of sub. (5) and the person satisfies one of the
requirements of sub. (1)(a) to (i).
(3) INSTALLMENT AGREEMENTS.
(a) If a judgment creditor consents to allow
a judgment debtor to retain or reinstate the debtor's operating privilege or
motor vehicle registration under s.
344.25(2),
Stats., the parties shall file a copy of the written installment agreement
between the parties. The agreement shall meet the requirements of s.
Trans
100.13. In applying the requirements of s.
Trans
100.13, the term "injured party" shall mean the
judgment creditor, and the term "uninsured person" shall mean the judgment
debtor. The installment agreement shall provide that upon payment of the sums
specified in the agreement, the judgment will be satisfied. The installment
agreement shall clearly state whether the judgment is for damages to property,
or damages to a single individual or multiple individuals, or both, shall state
the aggregate payment amount sufficient to permit reinstatement of the person's
operating privilege under sub. (1)(f) to (i), and shall require the judgment
creditor to advise the division of motor vehicles upon receipt of payments
totaling that amount.
(b) If the
department is notified that a judgment debtor has defaulted on a written
installment agreement filed under s.
344.25, Stats., and 6 months
have not elapsed from the date of the agreement, the department shall advise
the person notifying the department of the default that no action may be taken
until 6 months have elapsed and may not take further action. If 6 months have
elapsed from the date of the agreement, the department shall immediately
suspend the person's operating privilege and motor vehicle registration. The
suspension shall remain in effect until the person complies with sub. (5) and
meets one of the conditions required for reinstatement under sub. (1)(a), (b),
or (d) to (i).
Note: Section
344.25(2),
Stats., provides that a reinstatement following filing of a repayment agreement
is for a minimum of 6 months. Courts do not have authority to order operating
privilege or motor vehicle registration reinstatement in voluntary wage earner
debt amortization proceedings under s.
128.21, Stats. Amortization
orders entered under s.
128.21 will not result in a
debtor being able to immediately reinstate his or her operating privilege or
motor vehicle registration. In cases where a s.
128.21 proceeding is considered,
bringing a parallel s.
344.27 motion to amortize a
judgment debt should be considered.
(4) BANKRUPT PERSONS UNDER DAMAGE JUDGMENT
LAW.
(a) A person whose operating privilege or
motor vehicle registration is suspended or revoked under s.
344.25, Stats., who files a
petition in bankruptcy, and from whom collection of a pre-bankruptcy damage
judgment debt is stayed under
11 USC
362, or whose personal liability for the
damage judgment debt is discharged under U. S. bankruptcy laws, may reinstate
his or her operating privilege or motor vehicle registrations. The person shall
be subject to all the same vehicle reinstatement, filing and fee requirements
as any other person seeking operators license or registration reinstatement who
has obtained a satisfaction of judgment following a damage judgment suspension.
Note: See Holder v. DOT, 40 BR
847 (E.D. Wisc., 1984) regarding the Department's authority to require proof of
financial responsibility for the future of a bankruptcy debtor. Tort liability
is not "consumer debt" under 11 USC 101(7).
Therefore, Ch. 13 co-debtor stay does not prohibit collection against
non-bankrupt persons. In re ALVAREZ, 57 BR 65 (S.D. Fla.,
1985).
(b) If a judgment
creditor notifies the department that the automatic stay has been lifted to
permit collection of the debt evidenced by the damage judgment, the department
shall suspend the person's motor vehicle registration and operating
privilege.
(c) If the debtor's
bankruptcy case closes or the automatic stay is lifted and the debt is not
dischargeable under United States bankruptcy law, the department shall suspend
the debtor's operating privilege and motor vehicle registration upon receipt of
one of the following:
1. If a hearing is
required to determine dischargeability of the judgment debt under
11 USC
523(c) (1), a copy of the
court order finding the debt to be non-dischargeable.
2. If no hearing is required to determine
dischargeability of the judgment debt under
11 USC
523(c) (1), then an
affidavit of the claimant that the judgment is not dischargeable under
bankruptcy law, citing the appropriate exception to discharge applicable to the
judgment debt under 11 USC
523(a), and affirming that
the debt was not discharged in the debtor's bankruptcy proceeding, or a court
order making a determination that the debt was not discharged by the bankruptcy
proceeding.
(d) The
department may not permit a person whose operating privilege or motor vehicle
registration was suspended under par. (c) to reinstate the operating privilege
or motor vehicle registration unless the person provides a court order or
findings to the department from a proceeding to which the judgment debtor and
creditor were parties concluding that the debt was, in fact, discharged by the
bankruptcy proceeding or the person meets the reinstatement requirements of
sub. (1)(a) to (e).
(e) A debtor
who alleges a damage judgment was entered and certified to the department in
violation of the automatic stay in violation of
11 USC
362 shall be required to provide evidence
that the judgment is void or has been vacated or satisfied as a condition of
license reinstatement.
(5) STANDARD REINSTATEMENT REQUIREMENTS.
(a) In order to reinstate an operating
privilege after a suspension or revocation for nonpayment of a damage judgment,
in addition to satisfying the damage judgment by complying with subs. (1) to
(3), a driver must also pay all fees required for operating privilege
reinstatement and file any required proof of financial responsibility for the
future.
(b) In order to reinstate
vehicle registration after a suspension or revocation for nonpayment of a
damage judgment, a driver must also pay any fee required for reinstatement of
the vehicle registration.
Notes
Wis. Admin. Code
Department of Transportation
Trans 100.18
Cr. Register, April, 1994,
No. 460, eff. 5-1-94; CR 01-156: r. and recr. Register October 2005 No. 598,
eff. 11-1-05; CR 10-070: am. (1) (intro.), (2) (a), (b), (3) (a), and (4)
(title), cr. (1) (f) to (i), (1m), (2) (am), (c), and (5), renum. (3) (b)
(intro.) to be (3) (b) and am., r. (3) (b) 1. to 3. Register November 2010 No.
659, eff. 12-1-10.
Amended by,
correction in (1) (i) (Notes [1], [2]), (1m) (Notes [1], [2]) made under s.
13.92(4) (b) 7,
Stats.,
Register
December 2018 No. 756, eff.
1/1/2019
Amended by, CR 22-048: am. (2) (b)
Register
July 2023 No. 811, eff. 8/1/2023
