Trans 100.12(5)
(5) Bankrupt uninsured persons under safety responsibility law. Trans 100.12(5)(a)(a)
Effect on deposited security. Notwithstanding the imposition of a stay at the commencement of a bankruptcy proceeding or the issuance of an order of discharge in a bankruptcy proceeding, any security that is deposited with the department shall be held in trust by the department for the benefit of any injured party on whose behalf a security deposit has been required under s.
Trans 100.07 or s.
343.13, Stats.
Trans 100.12(5)(b)
(b)
Bankruptcy that precedes safety responsibility suspension. In any case in which the department is notified of a pending bankruptcy proceeding and applicability of a stay under
11 USC 362, the department may not suspend the operating privilege or motor vehicle registration of the debtor until the stay is no longer in effect and the department is notified by an injured party or their subrogated insurer that the debt was not discharged and that suspension under s.
343.14 or
343.18, Stats., is appropriate.
Trans 100.12 Note
Note: 11 USC 362 is the bankruptcy code's automatic stay provision.
Trans 100.12(5)(c)1.1. `Reinstatement.' An uninsured operator or vehicle owner whose operating privilege or motor vehicle registration is suspended under s.
344.14 or
344.18, Stats., who files a petition in bankruptcy, and from whom collection of a pre-bankruptcy debt arising from an accident occurring prior to the filing of the petition is stayed under
11 USC 362, or whose liability for damages resulting from an accident is discharged under United States bankruptcy laws may reinstate his or her operating privilege or motor vehicle registration. The person shall be subject to all the same reinstatement, filing and fee requirements as any other person seeking license reinstatement who has obtained a release from the injured party.
Trans 100.12 Note
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).
Trans 100.12(5)(c)2.
2. `Release of suspension ordered in violation of automatic stay.' If the department is notified that a stay prohibiting action against a debtor under
11 USC 362 was in effect at the time the department ordered revocation or suspension of the debtor's operating privilege or motor vehicle registration under s.
344.14, Stats., the department shall release the s.
344.14, Stats., revocation or suspension and, if the debtor is otherwise eligible to be licensed, reinstate the bankruptcy debtor's operating privilege and motor vehicle registration without any reinstatement fee.
Trans 100.12 Note
Note: 11 USC 362 is the bankruptcy code's Automatic Stay provision.
Trans 100.12(5)(c)3.
3. `Reimposition of suspension.' The department may suspend a debtor's operating privilege or motor vehicle registration that was released under subd.
1. or
2. upon a showing by an injured party that the debt for damages resulting from the accident was not discharged or satisfied within the bankruptcy proceeding and that the bankruptcy stay is not in effect or upon notification that the case has been dismissed.
Trans 100.12(5)(c)4.
4. `Proof.' The department may require satisfactory proof that the debtor's liability to all injured parties and their subrogated insurers have been discharged in a bankruptcy proceeding in any case where a debtor seeks to reinstate an operating privilege or motor vehicle registration after the case is closed or dismissed, a discharge has been granted, or the automatic stay has been lifted, terminated, annulled or modified. Acceptable proof may include copies of the schedules for the bankruptcy case listing the injured party as a claimant in the bankruptcy, proof of the filing date, such as the notice of bankruptcy filing mailed by the bankruptcy court or a copy of the petition containing the clerk's file stamp showing the date the petition was filed, and an affidavit that the debt is dischargeable under
11 USC 523 and has been discharged.
Trans 100.12(5)(c)5.
5. `Disputes.' In any case where a debtor uninsured operator or motor vehicle owner and an injured party dispute whether a discharge has affected the injured party's claim, the department may require one or both parties to obtain a court order that decides whether the claim is discharged.
Trans 100.12(5)(c)6.
6. `Court determinations.' The department shall accept court findings or orders regarding discharge of a claim in an action between the debtor uninsured operator or motor vehicle owner and an injured party as determinative, and may impose or release a suspension under ch.
344, Stats., in accordance with the determination of the court.
Trans 100.12 Note
Note: While the Department does not have authority to require debtors to provide a certain type of notice of bankruptcy filing to it under federal law, debtors who are subject to financial responsibility filing requirements will find that the Department's reaction to a bankruptcy filing is faster and more predictable under this section if the Department is listed on the mailing matrix for the proceeding with an address of Wisconsin Department of Transportation, Uninsured Motorists Unit, P.O. Box 7919, Madison, WI 53707-7919.
Trans 100.12(5)(d)
(d) The department may not release a safety responsibility or damage judgment suspension or revocation based solely upon a court order entered under s.
128.21, Stats.
Trans 100.12 Note
Note: Voluntary wage earner proceedings affect only executions, attachments or garnishments, and do not affect suspensions and revocations of operating privileges. s.
128.21 (1), Stats. Debtors using state procedures to reorganize debts may use a s.
344.27, Stats., process to obtain a court ordered repayment plan for an unpaid damage judgment.
Trans 100.12 History
History: Cr.
Register, October, 1985, No. 358, eff. 11-1-85; renum. (4) (intro.) to be (4) and am. r. (4) (a) to (c), cr. (5),
Register, April, 1994, No. 460, eff. 5-1-94;
CR 01-156: r. and recr. (1), (2), (4) and (5), renum. (3) to be (2) (c) 5. and am., cr. (3)
Register October 2005 No. 598, eff. 11-1-05.
Trans 100.13(1)(1)
For the purpose of s.
344.14 (2) (h) or
344.25 (2), Stats., a written agreement providing for payment in installments of an agreed amount for all claims for injury or damage resulting from the accident shall contain all of the following:
Trans 100.13(1)(a)
(a) A promise by the uninsured person to pay an amount of money or to transfer ownership of something that has money value to an injured party as settlement for all claims by the party for damages or injuries arising out of the accident.
Trans 100.13(1)(b)
(b) The date of the first installment payment, the frequency of payments if payments are to be made other than on a monthly basis, and the calculated date final payment is due under the payment plan.
Trans 100.13(1)(c)
(c) The notarized or duly acknowledged signature of the uninsured operator or owner making the payments. If that person is less than 18 years of age, a parent or sponsor under s.
343.15, Stats., shall co-sign the installment agreement as a person responsible for making the payments, or a legally appointed guardian may sign on behalf of the minor pursuant to court authorization of their signing the agreement as guardian.
Trans 100.13(1)(d)
(d) The witnessed signatures of all other parties in the installment agreement.
Trans 100.13 Note
Note: Form MV 3128—Installment Agreement to Pay Damages.
Trans 100.13(1)(f)
(f) If an injured party to the agreement is less than 18 years old and the amount of deposit required by the department under s.
344.13, Stats., does not exceed $5,000, the witnessed or acknowledged signature of the injured party's parent or legal guardian, and if any personal injury to the injured party occurred, a doctor's certification that the injury is not permanent.
Trans 100.13(1)(g)
(g) If an injured party to the agreement is less than 18 years old and the amount of deposit required by the department under s.
344.13, Stats., exceeds $5,000, or a doctor's certification that the injury is not permanent is not filed with the department, a guardian's signature in his or her capacity as guardian is required, together with a court order authorizing the guardian for the injured party to enter into the agreement.
Trans 100.13(1)(h)
(h) If an injured party to the agreement is incompetent, a guardian's signature in his or her capacity as guardian is required, together with a court order authorizing the guardian for the injured party to enter into the agreement.
Trans 100.13(1)(i)
(i) A statement as to whether the claim is for injury to property, injury to a person, or injury to a combination of persons or property, and that upon payment of the appropriate amount specified in s.
Trans 100.18 (1) (f) to
(i), the judgment creditor shall report the judgment as “satisfied for purposes of s.
344.26 (3), Stats.," to the division of motor vehicles.
Trans 100.13(2)
(2) An amended agreement shall be accepted if the original agreement filed is valid, the amended agreement is signed by all parties to the original agreement, and any required court approval under sub.
(1) (g) is filed
. Parties who have released their claims prior to the amendment may not be required to join in any amendment.
Trans 100.13(3)
(3) Notwithstanding s.
344.18 (3), Stats., a person who has been released from liability for debts arising from an accident may not be subjected to operating privilege or motor vehicle registration suspension based upon a default in a written installment agreement for the liability that has been released.
Trans 100.13(4)
(4) A person may not reinstate his or her operating privilege upon filing a written installment agreement if the person's operating privilege has been suspended for failure to comply with a court-ordered installment plan under s.
344.27 (3), Stats., until the case is resolved under s.
Trans 100.18.
Trans 100.13 Note
Note: Section
344.27 (3), Stats., provides that “[i]f the judgment debtor fails to pay any installment as specified by such order, the secretary, upon notice of such default, shall immediately suspend the operating privilege and registrations of the judgment debtor until such judgment is
satisfied as provided in s.
344.26." Section
344.26 provides that a person whose operating privilege is suspended for a damage judgment may be reinstated if the judgment is stayed, satisfied or discharged. But, s.
344.26 (3) makes clear that “satisfaction," as used in the statute, does not have its ordinary and generally understood meaning of paying a judgment in full (see, for example, s.
806.20, Stats.). Rather, “satisfaction" under the damage judgment law means to pay a creditor the same amount the creditor would have received if the judgment debtor had held insurance in the minimum mandatory amounts required to avoid responsibility under the safety responsibility laws. Trans 100.18 deals with the process of resolving a damage judgment suspension, including paying off the amount required to “satisfy" a judgment under s.
344.26 (3), Stats.
Trans 100.13 History
History: Cr.
Register, October, 1985, No. 358, eff. 11-1-85;
CR 01-156: am. (1) (intro.), (a) to (d) and (2), cr. (1) (e) to (h) and (3)
Register October 2005 No. 598, eff. 11-1-05;
CR 10-070: cr. (1) (i) and (4)
Register November 2010 No. 659, eff. 12-1-10.
Trans 100.15(1)(1)
Fee requirements. Except as provided in sub.
(3), a person shall pay the following fees as a condition of reinstating an operating privilege or motor vehicle registration that is suspended or revoked under ch.
344, Stats.:
Trans 100.15(1)(a)
(a) A person whose motor vehicle registration has been suspended or revoked under ch.
344, Stats., shall pay the reinstatement fee specified in s.
341.36 (1m), Stats.
Trans 100.15(1)(c)
(c) Persons subject to both motor vehicle registration and operating privilege suspensions shall pay all fees required under pars.
(a) and
(b).
Trans 100.15(2)
(2) Proof of financial responsibility requirement. Except as provided in sub.
(3), a person reinstating his or her operating privilege or motor vehicle registration shall satisfy the following proof of financial responsibility for the future requirements:
Trans 100.15(2)(a)
(a) If the person's operating privilege or motor vehicle registration was suspended or revoked for failing to deposit security, the person shall meet the proof of financial responsibility for the future requirements of s.
344.18 (1m), Stats., for 3 years from the date the person meets one of the requirements under sub.
(4).
Trans 100.15(2)(b)
(b) If the person's operating privilege or motor vehicle registration was suspended or revoked for failure to pay a damage judgment, the person shall meet the proof of financial responsibility for the future requirements of s.
344.26 (1), Stats. If the department imposed the revocation or suspension before September 1, 2000, and 3 years have not passed since the entry of judgment, the person shall keep proof of financial responsibility for the future on file with the department until 3 years have elapsed from the date of the entry of judgment. If the revocation or suspension was imposed by the department on or after September 1, 2000, and the judgment has been stayed, satisfied or discharged, the person shall keep proof of financial responsibility for the future on file with the department until 3 years have elapsed from the date the judgment was stayed, satisfied or discharged. If the revocation or suspension was imposed by the department on or after September 1, 2000, and a court has ordered that the judgment debtor be allowed to pay the judgment in installments under s.
344.27 (2), Stats., the person shall keep proof of financial responsibility for the future on file with the department until 3 years have elapsed from the date that order is filed with the department. In the event the person defaults on the installment agreement and is subjected to another operating privilege or motor vehicle registration suspension, and the judgment is stayed, satisfied or discharged, the person will be required to post proof of financial responsibility for the future for a 3 year period from the date the judgment was stayed, satisfied or discharged.
Trans 100.15 Note
Note: See
1999 Wis. Act 80, s.
9348, for authority on provisions involving the date September 1, 2000.
Trans 100.15(3)
(3) Fees and proof of financial responsibility for the future not required. No operating privilege or motor vehicle registration reinstatement fee or future proof of insurance is required when any of the following occur:
Trans 100.15(3)(a)
(a) The person submits credible evidence to the department that the person was not the driver or owner of the vehicle involved in the accident.
Trans 100.15(3)(b)
(b) The person submits written verification to the department that an insurance policy or bond meeting the requirements of s.
344.15, Stats., was in effect at the time of the accident. The written verification must be submitted prior to the person reinstating his or her operating privilege or motor vehicle registration.
Trans 100.15(3)(c)
(c) The department's decision is reversed by a circuit or higher court in a petition for review.
Trans 100.15(3)(d)
(d) A stay imposed under United States bankruptcy laws prohibited suspension or revocation of the person's operating privilege or motor vehicle registration at the time the department suspended or revoked the person's operating privilege.
Trans 100.15(3)(e)
(e) The suspension is a result of administrative error on the part of the department.
Trans 100.15(3)(f)
(f) A person suspended under ch.
344, Stats., petitions the department and a hearing examiner determines there is no reasonable possibility of a judgment against a person.
Trans 100.15(4)
(4) Resolving claim in safety responsibility cases. A person whose operating privilege or motor vehicle registration is suspended or revoked for failure to deposit security under s.
344.14 or
344.18 (3), Stats., shall meet one of the following conditions as a prerequisite to reinstating the operating privilege or motor vehicle registration:
Trans 100.15(4)(b)
(b) File evidence with the department that the person has been released from liability or adjudicated not to be liable as required by s.
344.18 (1) (b), Stats., in a form acceptable under s.
Trans 100.12.
Trans 100.15(4)(d)
(d) Be subject to an operating privilege or motor vehicle registration suspension or revocation for a period of more than one year, provided that no notice is filed with the department by an injured party or claimant in interest that an action has been commenced in the form and manner required by s.
344.18 (1) (d), Stats.
Trans 100.15(5)
(5) Resolving claim in damage judgment cases. A person whose operating privilege or motor vehicle registration was suspended or revoked for failure to pay a damage judgment may not reinstate an operating privilege or motor vehicle registration until the person resolves the damage judgment case in a manner permitted under s.
Trans 100.18.
Trans 100.15 Note
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 under s.
Trans 100.18. See s.
Trans 100.18 (4) regarding the effect of a bankruptcy on a damage judgment revocation.
Trans 100.15 History
History: Cr.
Register, October, 1985, No. 358, eff. 11-1-85; r. and recr.,
Register, April, 1994, No. 460, eff. 5-1-94;
CR 01-156: r. ((intro.), renum. (1) to be (3) (a), (3) to be (3) (c), cr. (1), (2) and (5), renum. (2) to be (3) (b), (5) and (6) to be (3) (e) and (f) and am., r. and recr. (4),
Register October 2005 No. 598, eff. 11-1-05;
CR 10-070: renum. (5) (intro.) to be (5) and am., r. (5) (a) to (e)
Register November 2010 No. 659, eff. 12-1-10;
CR 22-048: am. (3) (a) Register July 2023 No. 811, eff. 8-1-23.
Trans 100.16(1)(1)
The department shall issue a certificate of self-insurance to a person under the following conditions:
Trans 100.16(1)(a)
(a) The person owns more than 25 motor vehicles which are registered in Wisconsin;
Trans 100.16(1)(c)
(c) The person's application and a financial statement, signed during the last calendar year, indicate that the person has and will continue to have the ability to pay judgments arising out of motor vehicle accidents.
Trans 100.16 Note
Note: Forms MV 3069—Application for Self-Insurance and MV 3070—Safety Responsibility Self-Insurance Certificate.
Trans 100.16(2)
(2) Self-insurance certificates shall be issued for a period of one year.
Trans 100.16(3)
(3) Renewal of a certificate requires submittal of a new self-insurance application and a financial statement.
Trans 100.16(4)(a)(a) A person shall be considered to have the ability to pay judgments arising out of motor vehicle accidents if the person has unencumbered assets of at least the sum of multiple injury minimum coverage plus property damage minimum coverage times the square root of the total number of motor vehicles owned by the person and operated on Wisconsin highways, is paying creditors as the person's debts become due, and does not have any judgment, fine or forfeiture that has remained unpaid more than 30 days.
Trans 100.16 Note
Note: The sum of
multiple injury minimum coverage plus property damage minimum coverage is $60,000. Wis. Stat. s.
344.33 (2) (b) and
(c).
Trans 100.16(4)(b)1.
1. “Unencumbered assets" means the net worth of the person less the sum of all contingencies and reserved capital.
Trans 100.16 Note
Note: Unencumbered Assets = Net Worth – (Contingencies + Reserved Capital).
Trans 100.16(4)(b)2.
2. “Contingencies" means events that have occurred, or that are likely to occur, that if included in the financial statements of the person, would have a material effect on the financial position of that person.
Trans 100.16 Note
Note: Examples of contingencies include a lawsuit that could result in the payment of damages, fines or forfeitures that have not been reflected or disclosed on the financial statements or investment losses not yet realized and not reflected or disclosed on the financial statements.
Trans 100.16(4)(b)3.
3. “Reserved capital" means any amount reserved by management as required by contract or reserved for a specific activity.
Trans 100.16 Note
Note: Examples of reserved capital include established reserves required by loan agreements, planned purchases of company stock, and planned distributions of capital.
Trans 100.16(4)(c)
(c) Evidence that a person has the ability to pay judgments shall be provided in the form of audited financial statements or on a United States securities and exchange commission form 10K filing.
Trans 100.16 Note
Note: The provisions of sub. (4) are drawn from the Insurance Industry Committee on Motor Vehicle Administration's recommendations to the American Association of Motor Vehicle Administrators.
Trans 100.16 History
History: Cr.
Register, October, 1985, No. 358, eff. 11-1-85;
CR 01-156: am. (2), cr. (4)
Register October 2005 No. 598, eff. 11-1-05;
CR 10-070: am. (4) (a)
Register November 2010 No. 659, eff. 12-1-10.
Trans 100.17(1)(1)
A transfer of ownership of any motor vehicle that has its registration suspended or revoked or is subject to suspension or revocation under s.
344.14, Stats., may not be allowed under any of the following circumstances:
Trans 100.17(1)(a)
(a) The owner whose registration is suspended, revoked or subject to suspension continues to have possession of, use of, or receive any benefit from the operation of the motor vehicle.
Trans 100.17(1)(c)
(c) The transferee is unable to prove that adequate consideration was paid for the motor vehicle.
Trans 100.17(1m)
(1m) The department may not issue a title in the name of a purported purchaser for a motor vehicle if the transaction is impermissible under sub.
(1).
Trans 100.17(2)
(2) A person's registration shall be considered subject to suspension or revocation under s.
344.14, Stats., when written notice of a security requirement under s.
344.13, Stats., is issued by the department.
Trans 100.17(3)
(3) An application for transfer of ownership may be accepted and a title may be issued in the name of the purchaser, when either of the following occur:
