Posted by: admin in chapter 13 bankruptcy laws on
pmoliva1 asked:
If you reside in one state, leave the country for 6 months and when you come back you are in a different state. In what state do you file for Bankruptcy (Chapter 7 or 13) according to the new laws.?
Tags: Bankruptcy Laws, Bankruptcy Chapter 7, New Laws
The new laws didn’t change any of that. You still file in the state you reside in (wherever your driver’s license or state ID is from). The new laws only changed the qualifications to apply for Chap 7.
Actually the person above is incorrect. Residency requirements were affected under the new laws. Bankruptcy laws exist at both the state and federal level, and some states’ laws are more favorable than both other states’ and federal law. Under the old law it was very simple to find the state that offered the most favorable bankruptcy laws and file in that state. The new law is designed to prevent debtors from “jurisdiction shopping”, such as moving to a new state and immediately filing bankruptcy.
Under the new laws, if you’re living in a state for less than two years that has more-favorable provisions than the one you previously lived in, you can’t use the more-favorable provisions. So establishing residency of at least a 2 year period is key.
You can go to the following link to better understand some of the changes under the new bankruptcy law:
If you want a correct answer… ask a local bankruptcy attorney!
I would suggest you read the article “New Bankruptcy Law – Where’s The Consumer Protection?” you can view it at: