City of Chicago v. Mance

Dist. Ct. did not err in confirming Bankruptcy Ct. order, finding that plaintiff-City’s possessory lien on defendant-debtor’s vehicle that it impounded due to unpaid tickets was “judicial lien” that was avoidable in bankruptcy under 11 USC section 522(f). Record showed that at time of debtor’s bankruptcy filing, City’s lien on her vehicle totaled $12,245 and that her vehicle was worth only $3,000. Also, instant lien qualified as judicial lien, where, prior to City obtaining instant impoundment lien, debtor underwent certain quasi-judicial proceedings that generated findings that debtor owed specific fines and other costs arising out of issuance of traffic tickets. Moreover, without said quasi-judicial proceedings, City could not impose lien on indebted driver’s vehicle. As such, instant lien did not qualify as “statutory lien” that would not be avoidable in bankruptcy because instant lien did not arise solely by statute.