![]() ![]() 2019) (vehicular tickets incurred during course of a Chapter 13 bankruptcy are administrative expenses that must be paid in full). 2019) (City’s refusal to turn over vehicles to petitioners during bankruptcy proceedings violated automatic stay), vacated and remanded sub nom. Some of the City’s tactics have worked and others have not. ![]() This appeal presents a new chapter in a long-term e ort by the City of Chicago to collect parking nes and other tra c fees from drivers who seek bankruptcy protection. _ ARGUED OCTODECIDED AP_ Before SYKES, Chief Judge, and KANNE and HAMILTON, Circuit Judges. _ Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. ![]() MANCE, Debtor, CITY OF CHICAGO, Appellant, v. In the United States Court of Appeals For the Seventh Circuit _ No. The lien was tied inextricably to the prior adjudications of Mance’s parking and other infractions, so it did not arise solely by statute, as the Bankruptcy Code requires for a statutory lien. The bankruptcy and district courts and the Seventh Circuit concluded that the lien was judicial and avoidable. If the lien is statutory, it is not avoidable under the same provision. When a vehicle owner files for Chapter 7 bankruptcy, she can avoid a lien under 522(f) if the lien qualifies as judicial and its value exceeds the value of her exempt property (the car). With a monthly income of $197 in food stamps, Mance filed for Chapter 7 bankruptcy and sought to avoid the lien under 11 U.S.C 522(f). Mance incurred several unpaid parking tickets her car was impounded and subject to a possessory lien of $12,245, more than four times her car’s value. Many drivers cannot afford to pay their outstanding tickets and fees, let alone the liens imposed on their cars through this process. Under a 2016 Chicago ordinance, when a driver incurs the needed number of outstanding tickets and final liability determinations, Chicago is authorized to impound her vehicle and to attach a possessory lien. Outstanding debt for Chicago traffic tickets surpassed $1.8 billion last year. ![]()
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