Bankruptcy Ct. erred in confirming Chapter 13 plan that kept debtor’s car in bankruptcy estate, which essentially prevented City of Chicago from using devices such as towing or booting to collect on fines that had been assessed against debtor for parking and other vehicular offenses. Confirmation of said plan was contrary to holding of Steenes I, 918 F.3d 554, and in Steenes II, 942 F.3d 834, which held that there must be a good, case specific reason for keeping car in bankruptcy estate after confirmation of Chapter 13 plan, and that vehicular fines are administrative expenses under 11 USC section 507(a)(2). Moreover, record did not contain good, case specific reason for why instant confirmation of plan should not vest all estate property in debtor, and Ct. rejected claim that debtor is entitled to have property remain in bankruptcy estate following confirmation of plan, even if debtor’s choice was motivated by desire to avoid payment of fines.
Federal 7th Circuit Court
Civil Court
Bankruptcy