zdask
Home
/
Politics
/
City Can’t Keep Impounded Cars After Drivers File for Bankruptcy: Court
City Can’t Keep Impounded Cars After Drivers File for Bankruptcy: Court-December 2024
Dec 21, 2025 11:34 AM

A federal appeals court says Chicago can no longer continue to hold impounded vehicles of drivers in debt to the city after the vehicle owner files for bankruptcy. It’s all part of a complicated legal case related to a ProPublica and WBEZ investigation last year that found city ticketing policies put a huge burden on mostly low-income Chicagoans of color.

The court case hinges on Chapter 13 bankruptcy, writes reporterMelissa Sanchezof ProPublica Illinois. “This kind of bankruptcy allows for ticket debt forgiveness and what’s known as an ‘automatic stay,’ a protection that gives debtors the opportunity to regain their financial footing and repay their creditors. For years, what that meant for indebted motorists in Chicago was the ability to quickly reinstate drivers’ licenses suspended over unpaid tickets and retrieve impounded vehicles without having to first pay fines or fees,” Sanchez wrote.

Comments
Welcome to zdask comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Politics
Copyright 2023-2025 - www.zdask.com All Rights Reserved