Ten Reasons to Delay Filing Bankruptcy! Reason No. 2: Debtor’s Domicile
By Kevin Gipson, New Orleans Bankruptcy Attorney on Jan 31, 2009 in General Bankruptcy Information
The 2005 amendments to the Bankruptcy Code, known as the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed the time that a debtor must be domiciled in a state before the debtor can claim the bankruptcy exemptions of that state.
Under the pre-BAPCPA Bankruptcy Code the debtor generally had to wait 90 days to use the bankruptcy exemption laws of their new state. Under BAPCPA, the debtor must now wait two years before the debtor can use the new state of domicile’s bankruptcy laws.
Depending upon which state’s exemptions are better for the debtor, it may be best to file quickly to use the prior state’s bankruptcy exemption laws or to try to wait out the two years and use the new state’s bankruptcy exemption laws.
Obviously, other factors than only the best bankruptcy exemptions will come into play in determining if and when a bankruptcy should be filed, and rarely do people move from one state to another in search of the best bankruptcy exemptions for their debt situation.
However, when there is a choice of exemptions, it is a good idea to consult with an experienced bankruptcy attorney to assist you in making the best decision for your debt situation.
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