Section 100.18. Damage judgments.

 

(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.

(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.

(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.

(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.

(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.

(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.

(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) .

(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.

(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.

(b) Tribal judgments. Upon receipt of a certified damage judgment naming a Wisconsin resident or licensed driver as judgment debtor from an 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) .

(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.

(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.

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.

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. Microsoft Windows NT 6.1.7601 Service Pack 1 See s. 893.40 , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 See the note following s. Trans 100.18 (1) (i) . Microsoft Windows NT 6.1.7601 Service Pack 1 See the note following s. Trans 100.18 (1) (i) . Microsoft Windows NT 6.1.7601 Service Pack 1 See the note following s. Trans 100.18 (1) (i) . Microsoft Windows NT 6.1.7601 Service Pack 1 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 $65,000 ($15,000 + $50,000) for such an accident to property and one person or $115,000 ($15,000 + $100,000) 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. 344.01 (2) (am) , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 Section 344.01 (2) (am), Stats., was repealed by 2011 Wis. Act 14 . Microsoft Windows NT 6.1.7601 Service Pack 1 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 20 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 344.01 (2) (am) , Stats. This provision permits more than one debtor-creditor agreed or judicially ordered payment plan under s. 344.25 or 344.27 , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 Section 344.01 (2) (am), Stats., was repealed by 2011 Wis. Act 14 . Microsoft Windows NT 6.1.7601 Service Pack 1 See s. 344.25 (5) , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 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. Microsoft Windows NT 6.1.7601 Service Pack 1 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. Microsoft Windows NT 6.1.7601 Service Pack 1 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). Microsoft Windows NT 6.1.7601 Service Pack 1