New Baltimore Towers v. Oksentowicz (In re Oksentowicz)

Nos. 04-73913, 04-74260 (E.D. Mich. Sept. 16, 2005) ; Clearinghouse Number: 55922

Description

Senior Apartment Complex’s Rejection of Debtor’s Housing Application Violates Bankruptcy Code’s Section 525 Antidiscrimination Provision

Abstract

The district court held that a federally subsidized senior apartment complex was a governmental unit subject to the Bankruptcy Code’s 11 U.S.C. § 525(a) antidiscrimination provision. Debtor moved to allege a Section 525 violation after receiving from defendant apartment complex a letter stating that his rental application had been denied. Debtor’s Chapter 7 relief was granted on June 12, 2003. Concluding that defendant violated Section 525(a), the bankruptcy court explained that the antidiscrimination section helped insure the fresh-start policy of the Bankruptcy Code by prohibiting governmental entities from refusing to deal with or denying property interest to a debtor due to his bankruptcy filing. Defendant argued that it was not subject to Section 525(a) because it was not a governmental entity. Affirming the bankruptcy court, the district court concluded that, because of the significant entwinement between defendant and the U.S. Department of Housing and Urban Development, defendant was a governmental unit in violation of Section 525(a).

Additional Information

Attorney Information
Amicus Curiae for Appellee-Cross-Appellant Susan Silverstein (AARP Foundation Litigation), Michael Schuster, AARP, 601 E Street, N.W., Washington DC 20049 (202.434.2060).
Docket Date
2005-09-16 00:00:00+00:00
Attorney Email
ssilverstein@aarp.org