What's happening
This bill exempts a debtor's interest in a rent-stabilized lease from being included in bankruptcy proceedings in New York.
Why it matters
Protects tenants in rent-stabilized apartments from losing their homes during bankruptcy. this change ensures that people facing financial hardship cannot have their right to their rent-stabilized lease taken away by creditors or trustees.
Strengthens housing security for vulnerable populations. , particularly low-income or elderly tenants who rely on rent-stabilized apartments to afford living in New York City, reducing the risk of displacement due to financial crises.
Limits potential exploitation by third parties. (such as bankruptcy trustees or speculators) who might otherwise view rent-stabilized leases as valuable assets to be seized and sold in bankruptcy proceedings, thereby helping to preserve affordable housing stock.
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Who cares
Rent-stabilized tenants filing for bankruptcy
The bill would exempt their interest in a rent-stabilized lease from bankruptcy proceedings.
Bankruptcy trustees
The bill would place a debtor’s interest in a rent-stabilized lease outside the assets available to satisfy creditors.
Creditors of rent-stabilized tenants
The bill would prevent them from reaching the debtor’s lease interest through bankruptcy proceedings.
Headline styles
Protect Rent-Stabilized Tenants
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
547
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. PERRY -- read once and referred to the Committee on Judiciary
AN ACT to amend the debtor and creditor law, in relation to exempting a debtor's interest in his or her rent-stabilized lease from bankruptcy proceedings
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 282 of the debtor and creditor law, as amended by chapter 206 of the laws of 1998, is amended to read as follows:
2. Bankruptcy exemption for right to receive benefits. The debtor's right to receive or the debtor's interest in: (a) a social security benefit, unemployment compensation or a local public assistance benefit; (b) a veterans' benefit; (c) a disability, illness, or unemployment benefit; (d) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor; [and] (e) the debtor's interest in his or her rent-stabilized lease; and (f) all payments under a stock bonus, pension, profit sharing, or similar plan or contract on account of illness, disability, death, age, or length of service unless (i) such plan or contract, except those qualified under section 401, 408 or 408A of the United States Internal Revenue Code of 1986, as amended, was established by the debtor or under the auspices of an insider that employed the debtor at the time the debtor's rights under such plan or contract arose, (ii) such plan is on account of age or length of service, and (iii) such plan or contract does not qualify under section four hundred one (a), four hundred three (a), four hundred three (b), four hundred eight, four hundred eight A, four hundred nine or four hundred fifty-seven of the Internal Revenue Code of nineteen hundred eighty-six, as amended.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06319-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.