If you are facing a judgment due to a motor vehicle accident, then you risk losing your drivers license if you fail to pay off the judgment. On the other hand, you can file a Chapter 7 or Chapter 13 bankruptcy and discharge (wipe out) that debt in order to retain your drivers license.
The State cannot discriminate against people on the basis of filing bankruptcy, and the suspension or loss of a drivers license would constitute a discriminatory act pursuant to Section 525 of the Bankruptcy Code.
Please note however that there is a discharge exception for drunk driving debts that resulted in personal injury or death to others. Those types of debts cannot be wiped out by filing bankruptcy. You should consult an attorney to discuss the facts and specifics of such a case if this applies to you.
A pattern that I have seen recently is for extremely old motor vehicle judgments to be brought up before the State Department of Transportation for a license suspension. If this is the case, your attorney will have to locate the old judgment to find out the name and address of that plaintiff, along with the motor vehicle insurance company. They will have to be listed on your bankruptcy schedules as potential creditors when you file your case.
Once the discharge order is granted by the Bankruptcy Court, then you or your attorney can contact the State Department of Transportation and you will need to pay the license renewal or reinstatement fee in order to resume your driving privileges.
If you have specific questions, please let me know!