As the holiday season gets fully into swing here
in midtown Manhattan, we at Shenwick & Associates wanted to take
this time to wish you a happy, safe and warm holiday season and a very
happy and healthy 2015. We also
wanted to thank you for your friendship, your business, your referrals
and your trust in us. Personal and business bankruptcies and workouts
are keeping us busy as 2014 draws to a close. We're here for you now
and in the upcoming year,
and we look forward to working with you.
We also wanted to update you on the fascinating case of Santiago-Monteverde v. Pereira (In re Santiago-Monteverde), which we've previously discussed
here. When we last wrote about this case, the
Second Circuit Court of Appeals had certified the following question to the
New York State Court of Appeals:
Whether a debtor‐tenant possesses a property interest in the protected
value of her rent‐stabilized lease that may be exempted from her
bankruptcy estate pursuant to New York State Debtor and Creditor Law
Section 282(2) as a
"local public assistance benefit"?
In a
decision issued on November 20th, the New York State Court of
Appeals held in a 5-2 vote to answer the question in the affirmative.
Writing for the majority, Judge Abdus-Salaam held that "[t]he
rent-stabilization program has all of
the characteristics of a local public assistance benefit" and "[w]hile
the rent-stabilization laws do not provide a benefit paid for by the government, they do provide a benefit conferred by the government through regulation
aimed at a population that the government deems in need of protection."
The 2nd Circuit Court of Appeals still needs to issue its decision in
the next few months, but this ruling finally settles that
rent–stabilized and rent–controlled tenants in New York State no longer
have to fear losing their leases when
considering a Chapter 7 bankruptcy. Any persons having questions about
personal bankruptcy or the Santiago-Monteverde v. Pereira (In re Santiago-Monteverde) case should call Jim Shenwick.
Happy holidays and happy 2015 from Shenwick & Associates!
Wednesday, December 24, 2014
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