While Section 109(a) describes who can file a Chapter 13 Bankruptcy, we want to know now where can the bankruptcy be filed?
It is not possible to move from one state to another and file Chapter 13 Bankruptcy the next day. 28 U.S. Code Section 1408 states that debtor may file a bankruptcy in the bankruptcy court of the federal judicial district in which the person filing bankruptcy has his/her principal residence, place of business, or principal assets. The domicile has to be where you were domiciled the greater part of the last 6 months and so, where you have been domiciled the last 91 days.
For example, if you moved from California to Minnesota and you have been domiciled or resided in Minnesota the last 91 days, you qualify to file a Chapter 13 Bankruptcy in Minnesota. Or, what if you live in Wisconsin but have a business in Minnesota? Or, what if you own a home in Minnesota and you live in Wisconsin and rent in Wisconsin? In both of these scenarios, debtor could either file in Wisconsin or Minnesota.
Now, which set of exemptions that can be used is another story altogether and will be covered later. There are obvious advantages and disadvantages to the use of one state’s exemptions over another so careful planning is required here. Always speak to a local attorney well versed in your state law exemptions. Never hire a paralegal or seek advice from a paralegal because they are not lawyers and cannot give you legal advice.
Once you know the state you can file your Chapter 13 Bankruptcy in, you are well on your way to getting your life back!
CONCLUSION
When the time is right, or when you are ready, reach out to Minnesota’s nicest bankruptcy law firm at www.kainscott.com. You will be so happy you did!
