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.










