Before You Move, Talk To A Bankruptcy Lawyer
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Apr 15, 2009 in Benefits of Bankruptcy, Featured, General Bankruptcy Information
If you are thinking about moving and you are considering filing for bankruptcy, you should speak to a lawyer before you make your move. I have had several calls this week from people in other states who plan to move to Charlotte NC and want to file for bankruptcy. They want to set up an appointment with me, but I think that they should talk to someone where they live now.
Why? Because they may qualify for filing Chapter 7 where they are, but once they move they may not. Since I can’t turn back the clock, it makes sense to be sure that they understand the process and how it works before making that move.
Changes to circumstances may affect what a lawyer tells you. The means test changes based upon the local living expenses assigned to residence at the time of filing. The means tests affects whether or not people can file for Chapter 7, or whether they must file a five year Chapter 13 repayment plan.
When moving, many people will leave a mortgaged home and move into a rental in their new location, which may change the results of the means test. Exemptions, or the laws that protect your property, may also change if you move.
Sometimes a lawyer will tell you that you won’t be harmed, or you may even be better off waiting to file until you move. But in case you are in the group hurt by the change, find out before you go.
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