667 B.R. 76
Bankr. S.D.N.Y.2025Background
- Djahida Chalek, acting pro se, filed a chapter 7 bankruptcy—the sixth such filing by her family members in an apparent effort to delay eviction from a penthouse condo in Manhattan.
- The landlord, Meghila LLC, and Chalek's daughter had entered into a lease at $8,000/month, but the Chaleks made no rental payments after the initial deposit; the amount owed exceeded $450,000.
- After obtaining a state court default judgment granting eviction and damages against the Chaleks, Meghila LLC moved in bankruptcy court for relief from the automatic stay to proceed with eviction.
- Previous filings by Chalek’s family members had repeatedly been dismissed for procedural deficiencies or declared in bad faith as mere attempts to delay eviction.
- Djahida Chalek opposed the motion, contested the fairness of the hearing, and sought the judge’s recusal, citing lack of translation services and alleged judicial bias.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Relief from automatic stay (bad faith) | Family’s bankruptcy filing pattern not bad faith; no cause for stay relief | Filings were in bad faith solely to frustrate eviction, justifying relief | Stay lifted for cause due to bad faith pattern |
| Applicability of § 362(b)(22) | Automatic stay should be declared inapplicable under § 362(b)(22) | Debtor not a lease signatory; section does not apply | Relief denied; section applies only to lease signatories |
| In rem relief/prejudice against refiling | Sought to block future filings affecting the property for 18 months and "with prejudice" | Landlord not a secured creditor; no authority for such relief | Both requests denied; limited to secured creditors under the Code |
| Recusal and reconsideration | Claimed lack of translator, hearing unfair, and judge biased | No advance request for translator, all filings in English, no prejudice shown | Both motions denied; no evidence of bias or procedural error |
Key Cases Cited
- In re C-TC 9th Ave. P’ship, 113 F.3d 1304 (2d Cir. 1997) (bad faith filing constitutes cause for lifting the automatic stay)
- In re Casse, 198 F.3d 327 (2d Cir. 1999) (with-prejudice dismissal orders are appropriate only upon party dismissal, not on lift-stay motions)
- In re Aguinda, 241 F.3d 194 (2d Cir. 2001) (objective standard for recusal based on appearance of impartiality)
- Kolel Beth Yechiel Mechil of Tartikov, Inc. v. YLL Irrevocable Trust, 729 F.3d 99 (2d Cir. 2013) (standard for reconsideration: change in law, new evidence, or clear error)