Practice and Procedure
The filing of a bankruptcy petition does not prevent a City agency from
commencing enforcement action.
In a housing discrimination case brought by the Commission on Human Rights, two real estate brokers pointed to a Federal bankruptcy statute to argue that the filing of a bankruptcy petition prevents the Commission from commencing or continuing any legal proceeding against them. ALJ Tynia D. Richard found that the Commission could proceed with the charges because of an exception in the same statute, which provides that the filing of a bankruptcy petition does not affect the power of a regulatory agency to enforce government regulations.
Comm'n on Human Rights v. Britati Realty, Inc. (in PDF) , OATH Index No. 778/13 (May 21, 2013).