This decision addressed the “important issue whether Bankruptcy Code Section 525’s antidiscrimination provision, prohibiting a governmental unit from evicting a debtor on the basis of nonpayment of prepetition discharged rent, applies to a private landlord participating in the Section 8 Housing Choice Voucher Program” (§8 Program). All references to “sections” refer to the Bankruptcy Code.
The landlord sought to evict a tenant debtor from her §8 subsidized apartment in state court (State Court Eviction Proceeding) based on the debtor’s failure to pay both prepetition discharged rent and post-petition rent. If §525 is inapplicable to the landlord, §365(d)(1) required the debtor to “cure all prepetition rent arrears in order to assume her residential lease, or the lease is ‘deemed rejected.’” 11 U.S.C. §365(d)(1). Section 525(a) prevents a “‘governmental unit’ from revoking or refusing to renew a lease because a debtor has not paid discharged debt.”
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