New York tenants who qualify for rent-stabilized leases have recently gained new protections in bankruptcy proceedings.
The New York State court ruled that rent-stabilized leases cannot be considered assets, or considered part of the estate, when an individual files for bankruptcy protection. It’s considered a public-assistance benefit, much like disability or unemployment benefits.
The decision could affect—or protect—millions of New Yorkers, according to a recent New York Times article. Landlords will face more difficulty in evicting tenants with rate-regulated leases who have filed for bankruptcy.