Chicago’s Lien Invalid, Must Return Car to Bankrupt Debtor

The City of Chicago’s possessory lien on a car it impounded because of $17,000 in unpaid parking tickets is invalid, a bankruptcy judge ruled April 16.

Chicago’s municipal code providing that the city has a lien on impounded vehicles doesn’t comply with state law, Judge Jacqueline P. Cox of the U.S. Bankruptcy Court for the Northern District of Illinois held.

She ordered Chicago to return the car and fined it $50 a day until it does so.

Jason Scott Howard filed Chapter 13 in August 2017. In Chapter 13 debtors make payments to creditors according to a court-approved plan over ...