Does It Matter Which State I File My Bankruptcy In?

: Chris Lee Law Firm

  Filed under: Filing Bankruptcy

mapThere are rules and regulations that must be adhered to when filing for a bankruptcy. This applies to both the Chapter 13 and Chapter 7 bankruptcies. If you have just moved to a new state and you are determining that you want to go bankrupt then there are several things that you need to consider.

Major Considerations

You need to determine whether your new state or your previous state has the best exemptions. You have to determine when you moved as to whether you would be eligible for filing in either state, and you must consider how much property is at risk here.

Every state has their own rules especially when it comes to Texas bankruptcy exemptions. If you have the choice of having your bankruptcy taken care of in either state then you want to compare the exemptions for both of these to see which is best suited to for your needs. There are also a federal exemptions and the particular stat that you are filing for bankruptcy in will dictate whether you can use the federal exemptions or whether you must comply with theirs.

Some individuals assume that as soon as they move to a new state that they can automatically file for their bankruptcy there. This may not be the case as it may be determined by the length of time that you have lived in your new state.

In some cases it may be a two year rule. This means that you will have to have lived within that state for two years before you are able to use the states bankruptcy exemptions. Prior to this you can still claim the bankruptcy but you would have to use the exemptions of the state that you lived in prior to this new one. Based on these timing rules it is highly important that you choose to go into a Texas bankruptcy according to what is going to fit your needs the best.

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