Bankrupt Tenant May Bust Up Rent-Control System

A rent-controlled lease in the city of New York is a fascinating sort of product from an economic standpoint: It is both property and not property. You can't sell your lease to a handsome stranger who offers to buy it. On the other hand, you often can bequeath it to a child or other relative who lives with you. No one can remove you as long as you pay the statutory rent, but if you leave it for more than a couple of years, it reverts to your landlord. It's a little bit mind-bending.

Well, prepare to have your mind bent even further, because this tension forms the center of a fascinating legal case. Mary Veronica Santiago, a rent-stabilized tenant, has declared bankruptcy. And the courts are considering whether her lease is a financial asset that can be sold off to pay her debts.