City of Chicago v. Fulton
United States Supreme Court
141 S. Ct. 585 (2021)
- Written by Jamie Milne, JD
Facts
After Robbin Fulton and others (the vehicle owners) (debtors) failed to pay their fines for motor-vehicle infractions, the City of Chicago, Illinois (the city) (creditor) impounded their cars. Each of the vehicle owners subsequently filed for Chapter 13 bankruptcy, seeking to enter a payment plan allowing payment to creditors over time. Each vehicle owner then asked the city to return his or her car, believing that such relief was warranted under the Bankruptcy Code’s automatic stay. The city refused, and in each of the bankruptcies, the bankruptcy court held that the refusal violated the automatic stay. In a consolidated appeal, the court of appeals affirmed the bankruptcy court’s judgments. The United States Supreme Court then granted certiorari to resolve a circuit split on the scope of the automatic stay.
Rule of Law
Issue
Holding and Reasoning (Alito, J.)
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