How Long Do You Have To Live In A State To File Bankruptcy There?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Sep 22, 2007 in Bankruptcy Practice and Procedure, Benefits of Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, North Carolina
The short answer is that someone should file bankruptcy in the state that they have spent the greater part of the last 180 days. More simply said, for most people this is for at least 91 days.
Where a bankruptcy is supposed to be filed is controlled by the concept of legal “Venue“, which refers to the proper place for a legal action. However, any federal bankruptcy court has the authority to hear bankruptcy cases, since the jurisdiction is federal. Many courts will turn down or transfer a case if it is filed in an improper venue, although some may not.
It is a good idea to speak to an attorney sooner, rather than later, and possibly even before you move. If you are in financial trouble and haven’t lived in your state for 91 days, don’t let that stop you from talking to a lawyer now. First, it may take time to prepare your documents and get everything in place to file, and that 91 days will fly by. Second, in a pinch an experienced attorney can usually guide you to help in the bankruptcy court if necessary.
While bankruptcy laws are federal laws, which mean that they are “national”, there are differences in how bankruptcy laws affect someone depending on where they file. Most people aren’t thinking of this before they file bankruptcy. Most bankruptcy debtors simply call a lawyer when things get bad financially. Sometimes this happens right after someone moves. Sometimes people are reluctant to start a legal process when they know they are about to move to another state.
See also my article Waiting To File Bankruptcy Until You Move Can Hurt You Sept 21, 2007
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