Bankruptcy Order Discharged Rent Due

Facts: In May 1996 landlord sued to evict rent-controlled tenant for nonpayment of rent for the period between Jan. 1, 1994, through April 1996. In June 1996 the court ruled for landlord. The court entered judgment on June 21, 1996, for rent from November 1995 through June 1996 and delayed issuance of the warrant. The warrant was issued on Aug. 19, 1996. Tenant filed a Chapter 7 bankruptcy petition on Sept. 16, 1996, and listed landlord among his creditors. Landlord didn't appear in the bankruptcy case, and a final bankruptcy decree was entered on Dec. 30, 1996. Tenant asked the housing court in December 1996 to dismiss the nonpayment case. Tenant paid rent from January 1997 through June 1997. Landlord asked the court to award judgment for unpaid rent for October through December, 1996, claiming that these amounts weren't covered by tenant's bankruptcy decree. Court: Landlord loses for a number of reasons. The rent amounts claimed didn't fall under any of the statutory exceptions to discharge of debts. Tenant also had no assets. And landlord never appeared in bankruptcy court to file a claim on time for rents that accrued after tenant filed the bankruptcy petition, although it was listed as a creditor in tenant's petition and given notice of the bankruptcy proceeding. So tenant's release from debts by the bankruptcy decree included rent amounts through December 1996, and landlord's nonpayment case was dismissed.

Parkchester Apts. Co. v. Alston: NYLJ, p. 27, col. 6 (9/24/97) (Civ. Ct. Bronx; Halprin, J)