[CLBS] Reinstatement following discharge and the operation of I.C. 49-1205

[Tecla Druffel]

Hi all,

Has anyone had any experience reinstating a debtor's suspended driver's
license following a suspension under I.C. 49-1205?

My prospective client is a preschool teacher. She was in an auto accident
in 2008. Unbeknownst to her at the time, her vehicle insurance policy was
lapsed on the date of the accident. Drugs or alcohol was not a factor in
the accident. A lawsuit ensued and a default was entered. Her license was
suspended under I.C. 49-1204 et. seq. She came to me to find out if a
bankruptcy discharge could help reinstate her license. I researched it
today and came across this statute:

*§ 49-1205. Suspension to continue until judgments paid and proof given*
The driver's license and nonresident's driving privilege shall, except as
provided in section 49-1207, Idaho Code, remain suspended and shall not be
renewed, nor shall any driver's license be issued in the name of that
person, including any person not previously licensed, unless and until
every judgment is stayed, satisfied or discharged and proof of financial
responsibility is given. A discharge in bankruptcy shall not be deemed a
satisfaction of judgment unless the person gives proof of financial
responsibility.
____________________________________________________________________________

The highlighted portion sure seems to answer my question about the effect
of a bankruptcy discharge on reinstating a license, but question to our
group is *whether any of you have any input, including war stories, about
the operation of this statute. *Our Legislature appears to have been very
clear in its chosen language, but is it permissible for state law to create
its own exception to discharge outside of 523?

P.S. - I can't believe I haven't seen this come up before in my practice!
Any guidance or experience would be beneficial!

Thank you!
Tecla Druffel
Lewiston, Idaho