Article
What to Know When Moving During Bankruptcy
Your Case Stays in the Original Court
Filing for bankruptcy in a federal court is based on your residency or asset location within the 180 days preceding the filing. If you're considering moving out of state, it's essential to note that your case remains in the original court unless certain procedures are followed to request a transfer. This involves filing a motion, notifying your creditors, and attending a hearing where the judge will decide based on what's fair and convenient.
You Must Still Meet All Bankruptcy Obligations
It's vital to realize that changing states doesn't exempt you from any bankruptcy responsibilities. You are still obligated to attend hearings, complete debtor education courses, and make necessary payments, particularly in Chapter 13 bankruptcy scenarios. Any failure to comply or meet deadlines could have significant consequences on your case.
Updating Your Address is Critical
One of the most crucial steps you’ll need to take is keeping your contact information up to date with the court and your trustee. Failing to do so could lead to missed legal notices, which might cause delays or even jeopardize the discharge of your case.
Your Bankruptcy Exemptions Depend on Past Residency
Bankruptcy exemptions can vary significantly based on where you lived during the two years before filing. If you've moved frequently, the state of your primary residence during the 180 days before that two-year period may apply. In some situations where state-specific exemptions aren't available to non-residents, federal exemptions could serve as an alternative.
Extra Considerations for Chapter 13 Cases
Chapter 13 involves adhering to a repayment plan that spans several years. If you're moving, your payments should continue to the current trustee unless a court approves a transfer. Furthermore, any changes in income or expenses because of your move may necessitate a court-approved budget adjustment.
Remember, moving out of state while filing for bankruptcy doesn't halt the proceedings. Ensuring you meet all court obligations is crucial. Plan carefully, update your address accordingly, and don't hesitate to consult a bankruptcy attorney before making any big moves. Staying proactive and informed will help manage your situation effectively.