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No Eviction for Bankrupt Tenants Living in Rent Controlled Apartments

No Eviction for Bankrupt Tenants Living in Rent Controlled Apartments

Tenants in rent-subsidized apartments can’t get evicted when they file for bankruptcy, new court rulings taken together say. Bloomberg reports the case that decided it goes back to a woman who filed for bankruptcy in 2012 and was told by a federal judge that the value of her lease was part of her bankruptcy. She appealed and in November the New York Court of Appeals ruled that a subsidized lease isn’t an asset; on Monday, the 2nd Circuit Court made a similar ruling. Over a million apartments in the city are covered by some form of rent stabilization, according to the Metropolitan Council on Housing, a housing rights nonprofit. [Bloomberg]