The U.S. Supreme Court ruled on Thursday that a municipality may retain possession of a person’s impounded vehicle if that person files for bankruptcy, saying that doing so is not a violation of the automatic stay that protects debtors during the bankruptcy process.
In an 8-0 decision delivered by Justice Samuel Alito, the high court held that the city of Chicago did not violate the U.S. Bankruptcy Code by refusing to turn over vehicles that had been impounded due to failure to pay fines when the owner of the vehicle filed for bankruptcy protection.
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