Can I Declare Bankruptcy if I Move to Another State?

If you are in the process of moving to a new state and you wish to file bankruptcy, you may wonder if the relocation will affect your bankruptcy case. In most situations, moving from one state to another won't prevent you from filing bankruptcy, but it may affect the location in which you must file. Moving may also affect your allowed exemptions.

Filing Laws

To file bankruptcy in most jurisdictions, you must have lived within the jurisdiction for more than half of the 180 days that precede your filing date. If you move to a new state, you must live there for at least 91 days before you can file in that state. To file before 91 days have passed, you must typically file in the state you lived in previously.

Exemptions

Even if you have lived in a state long enough to file bankruptcy there, you may not have lived there long enough to use the state's exemptions. To claim exemptions in your state of residence, you must have lived in the state for at least 730 days before filing for bankruptcy. If you don't meet this requirement, then you must claim the exemptions from the state that you lived in for more than half of the 180-day period directly preceding the 730 days before your filing date.

Exceptions

Some states won't allow any individual filing bankruptcy to claim its exemptions if he is no longer a resident of the state, regardless of how long he lived there or how recently he moved. If you have moved from a state with such a law and you haven't lived in your new state long enough to qualify for its exemptions, you must use the federal exemptions listed in the United States Bankruptcy Code.

Considerations

Moving from one state to another can be beneficial or harmful to your bankruptcy case, depending on the differences between the allowed exemptions in each state. Though relocating may affect the location in which you file, it won't cancel any of your debt, nor will it prevent you from including any of it in the bankruptcy estate. If you relocate during bankruptcy, it won't typically affect your case.

References

• Bankruptcy Law Network; Waiting To File For Bankruptcy Until You Move Can Hurt You; Susanne Robicsek
• Law Offices of Hagen and Hagen: Filing Bankruptcy After Moving to California
• BankruptcyLawFirms.com: Filing Bankruptcy After Moving to Another State or District
• Hurban Law: What To Do if You Move During Bankruptcy