Moving is usually a great way to dust off the cobwebs and get a fresh, clean slate. But that can be hard to do when debt is hanging over your head. Whether it's credit card debt, medical debt, or old rent payments, debts (and creditors) have a way of finding you no matter how far you move. But our past decisions shouldn’t rob us of a future, so if you’re considering bankruptcy, let’s talk about timing.
I already know what you’ll ask – “But I just moved here! Can I even file?”
It depends!
The basic rule is that you must have lived continuously in the state of Minnesota for 90 days before you can file for bankruptcy here.
“So once I hit 90 days, I can file away?”
Yes! Sort of.
There is a bit of nuance here. Although you can file in Minnesota after 90 days, you may not be able to use Minnesota state exemptions to protect your property if you just moved here. To figure out what exemptions you can use, we have to consider where you lived for the last two years. Each state differs on whether it lets nonresidents use its exemptions.
Here are a few common states we see:
Wisconsin: Former Wisconsin residents do not have to use Wisconsin exemptions. They are allowed to use either Federal exemptions or Minnesota exemptions, whichever suits their case best.
California: California requires nonresidents to use California exemptions if they lived in the state within the last two years. The good news is that California’s exemptions are much more generous than Minnesota’s!
Michigan: Michigan allows former residents to use either Michigan state exemptions or federal exemptions.
North Dakota: North Dakota allows former residents to use some of their exemptions but generally requires federal exemptions.
Don’t see your state listed here, or want to talk in more detail about bankruptcy options? Reach out to LifeBack Law firm. Now that you’ve decided to make Minnesota your home let Minnesota’s best care for you! We at LifeBack Law Firm are here to do the heavy lifting for you and make this as stress-free and smooth as possible. When the time is right, or when you are ready to get your life back, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.