01 Feb Have you moved lately? It can make a big difference in bankruptcy!
Your bankruptcy lawyer should ask you how long you have lived in your present state. If you’ve lived there two years or more, we know that your present state’s laws are what we need to look at to know what you are entitled to keep in bankruptcy. But if you’ve lived in your present state less than two years, then we need to know where you lived the greatest part of the 180 days before those two years. Sounds complicated doesn’t it?
The Bankruptcy Code doesn’t want you to move around to select the state with the best exemptions. This became a big deal when people moved to Texas and other states to claim unlimited homestead exemptions. So we look back 6 months before two years if you’ve lived someplace less than that two year period.
That raises interesting questions too. Sometimes, the laws of the place you moved from don’t allow its exemptions to be used by people who live outside of that state. This rule is called the rule against extra-territoriality. If that happens, don’t worry. You still get to claim federal exemptions.
We find that many lawyers forget to ask this question. It’s important. So if your lawyer doesn’t ask you where you have lived, be sure to tell him.
Latest posts by Jay Fleischman, Esq. (see all)
- 5 Things You Need To Know About Bankruptcy Exemptions Before Your Case Is Filed - August 28, 2013
- Beware Of This Person When Trying To Wipe Out A Second Mortgage In Chapter 13 - August 26, 2013
- Our Best Tips For Filing For Bankruptcy Without Your Spouse - August 22, 2013
- 5 Ways To Celebrate Financial Literacy Month - March 31, 2013
- Burning Money With Handcuffs On - March 21, 2013