Rent Stabilized Status Lost in Bankruptcy
Will filing bankruptcy cause you to lose your rent-stabilized apartment?
Quite possibly.
On April 10, 2012, the United States Bankruptcy Court, S.D. New York ruled that a chapter 7 debtor could not exempt the value of her rent stabilized lease (SeeIn re Santiago-Monteverde, 466 B.R. 621 (Bankr. S.D.N.Y. 2012). Unfortunately,0n September 10, 2012, the debtor lost her appeal to the United States District Court, S.D. New York. The District Court affirmed the bankruptcy court’s ruling which rejected the debtor’s argument that the value of her rent-stabilized lease is a qualifying local public assistance benefit under section 282(2) of New York Debtor and Creditor Law.
It appears that the debtor’s chapter 7 case was going rather smoothly until the chapter 7 Trustee received an offer from the Debtor’s landlord to purchase the Trustee’s interest in the Rent-stabilized lease. This set off a chain of events which, for the time being, have resulted in the debtor potentially being forced out of her rent-stabilized apartment.
Thus, until legislation is enacted which allows debtors to safely exempt the value of their rent stabilized lease, bankruptcy practitioners will have to tread carefully when dealing with a debtor who leases a rent-stabilized apartment.
Bankruptcy Attorney in Mineola
If you would like more information regarding the subject of this post or a free consultation with a bankruptcy attorney, call the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620.
Filing Error Prevents Bank from Collecting Debt
Filing Error Prevents Bank From Collecting Debt
Recently, a trial court decided that Citibank could not recover a credit card debt, because its attorney forgot to attach an affidavit to a court filing. The affidavit should have provided the amount of debt the defendant was alleged to have owed. Without an affidavit stating the amount of the debt, the court set the damages at zero.
This case occurred in Arizona. But it highlights the kinds of errors that debt collectors often make when pursuing debts in court. Similar mistakes can prevent collection in New York Courts as well.
Consumer credit defendants are entitled to certain information; and plaintiffs must submit certain documents to the court. These matters can seem very technical, and at times superficial. But the slightest mistake can mean a huge difference for a consumer credit defendant. This is why it is always best to speak with an attorney before settling a credit card debt, either in or out of court.
Litigation Attorneys in Mineola
If you would like to speak to an attorney at The Law Firm of Vaughn, Weber & Prakope, PLLC, call 516-858-2620 for a free consultation.
What You Can(‘t) Do With a Nonprofit
A Senator was recently accused of stealing $30,000 from what’s being called a “sham nonprofit.” Apparently, the nonprofit received money for a “parent workshop.” The senator allegedly took the money herself, and lied about educating community members. If these allegations are true, it’s pretty obvious that this behavior was dishonest, and wrong. You definitely can’t do that with a nonprofit. But some activities that might seem innocent can also open a nonprofit up to liability.
Like other corporations, nonprofits are governed by bylaws. Bylaws are a list of procedures or rules that directors must follow when making decisions. For example, bylaws might require directors to present certain proposed actions to the membership. If the directors take certain actions without member approval, the directors may be sued. A court might issue an injunction, stopping the directors from taking those actions. That could tie up the nonprofit’s assets, or cause the nonprofit to miss out on contracts, grants, or other opportunities.
For this reason, it is always advisable to speak with an attorney if bylaws seem ambiguous. A qualified attorney can help directors decide what, exactly, they must do before they take action.
The Law Firm of Vaughn, Weber & Prakope, PLLC can advise you on nonprofit bylaws, or other aspects of nonprofit decision-making and governance. Call 516-858-2620 today for a free consultation.
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