Before You Move, Talk To A Bankruptcy Lawyer

15 Apr Before You Move, Talk To A Bankruptcy Lawyer

If you are considering filing for bankruptcy, and thinking about moving soon,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 file for bankruptcy in Charlotte NC but they haven’t moved here yet. They want to set up an appointment with me thinking that they will get the move behind them and file in their new home, but I usually tell them that they may want to talk to a lawyer where they live now, and find out how bankruptcy would affect them in the state they currently live it.

Why?

  • Because they may qualify for filing Chapter 7 where they are, but once they move they may not.
  • Property that is exempt (protected) in one state may not be exempt in another state.

Changes to circumstances, including your state of residence, may affect what will happen to you if you file for bankruptcy. Since you can’t turn back the clock, it makes sense to be sure that you understand the process and how it works, as well as how a move will affect you, before making that move.

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, some people will leave a mortgaged home and move into a rental in their new location. This may change the outcome of the means test.

Each state has different income amounts that determine who has to take the means test, and each state has different expenses allowed to be deducted and counted if you have to take the 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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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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