NY TimesNew York City and state officials have thrown their weight behind an elderly widow fighting to keep her rent-stabilized lease from becoming an asset with which to pay off her creditors, arguing that it would undermine the safeguards that both bankruptcy and rent laws are supposed to provide.In a brief filed jointly this week with the state’s Court of Appeals, lawyers from the state attorney general’s office and New York City’s Law Department said that, under current law, a lease for a rent-regulated apartment is not property that can be sold. Such a lease, they argued, amounts to a public benefit, just like disability or unemployment benefits, that is exempted from bankruptcy estate and cannot be seized as an asset in a personal bankruptcy. [Website comment: it is more similar to the exemption for a "homestead" - currently valued at $150,000 or less.]
Click on the link above for the full article, and on "read more" below for Assemblymember Linda Rosenthal's bill to ensure the exemption of a stabilized lease.
S T A T E O F N E W Y O R K ________________________________________________________________________ 10186 I N A S S E M B L Y August 25, 2014 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rosenthal) -- read once and referred to the Committee on Judiciary AN ACT to amend the debtor and creditor law, in relation to bankruptcy exemptions for rent regulated tenancies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 282 of the debtor and creditor law is amended by 2 adding a new subdivision 4 to read as follows: 3 4. BANKRUPTCY EXEMPTION FOR RENT REGULATED TENANCIES. THE DEBTOR'S 4 INTEREST IN A RESIDENTIAL RENT REGULATED TENANCY, HELD AND OCCUPIED BY 5 THE DEBTOR FOR A RENT REGULATED UNIT, REGULATED UNDER THE RENT STABILI- 6 ZATION LAW OF NINETEEN HUNDRED SIXTY-NINE, THE EMERGENCY TENANT 7 PROTECTION ACT OF NINETEEN SEVENTY-FOUR, THE EMERGENCY HOUSING RENT 8 CONTROL LAW, THE LIMITED-PROFIT HOUSING COMPANIES ACT OR THE CITY RENT 9 AND REHABILITATION LAW. 10 S 2. This act shall take effect immediately and shall apply to the 11 satisfaction of judgments on or after such date.