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How Consumer Bankruptcy Rulings Can Aid Ch. 11 Practice
Law360 (March 9, 2021, 2:48 PM EST) -- On Jan. 14, the U.S. Supreme Court handed down a unanimous opinion in Chicago, Illinois v. Fulton.[1] While Fulton arose out of a series of Chapter 13 cases in Chicago, commercial bankruptcy attorneys should not dismiss the decision's usefulness in Chapter 11 practice.
The city took possession of the individual debtor's vehicle prepetition pursuant to a city ordinance that provides for a possessory lien over the vehicle on account of unpaid parking fines. Chicago then refused to turn it over to the debtor once its Chapter 13 case was filed unless the debtor paid those past due — and prepetition —...