The U.S. Supreme Court. (Courthouse News photo/Jack Rodgers)
WASHINGTON (CN) — Debtors are not entitled to immediately reunite with their impounded property once they declare bankruptcy, the U.S. Supreme Court ruled Thursday.
The 8-0 decision settles four separate bankruptcy cases where Robbin Fulton and others saw their vehicles were impounded by the city of Chicago, refused to pay the fines and then declared bankruptcy.
Section 362 of the U.S. Bankruptcy Code prohibits collection activity against those who claim to be indigent, but the Supreme Court ruled Thursday that the mere retention of a debtor’s property once bankruptcy proceedings are underway does not violate the law.