In re: Fulton

Dist. Ct. did not err in four consolidated actions in finding that creditor-City of Chicago in instant Chapter 13 bankruptcy petitions violated automatic stay provision contained in section 362(a)(3) of Bankruptcy Code by continuing to hold debtors' vehicles after debtors had filed bankruptcy petitions until debtors paid off accrued parking tickets and impoundment fees. Under Thompson, 566 F.3d 699, creditor must comply with automatic stay provision and return vehicle to debtor upon debtor filing bankruptcy petition. As such, Dist. Ct. could properly order defendant to return vehicles to debtors and then require defendant to seek any protection for their interests in said vehicles within Bankruptcy Code, rather that allow defendant to retain vehicle to pressure debtors to pay off fines and fees to detriment of other creditors. Ct. rejected defendant’s claim that: (1) property seized prior to debtor filing bankruptcy petition is not property of bankruptcy estate; (2) instant stay provision contemplates debtor filing turnover action to retrieve his or her vehicle; (3) under section 363(a)(3), passive retention of vehicle is not “act” of control over vehicle; and (4) without retaining possession of vehicle to protect its interests, defendant was helpless to prevent loss or destruction of vehicle.