Your location is important in a bankruptcy, because it will determine the district you file in and applicable exemptions.
To file a bankruptcy where you are living, you have to have lived in the state the greater of 180 days (6 months). For example, if you are currently living in Texas, but have lived in Minnesota the last 100 days, you would need to file in Minnesota or wait until you have been in Texas longer.
There are two sets of exemptions in a bankruptcy, state and federal. Exemptions being the law used to protect your assets. Each state has its own rules for which set applies. In order to determine which state exemptions you can use, it is whichever state you have lived in continuously the past 2 years. If there is more than one state, then you look at where you lived for most of the time in the 180 days prior to the last two years. For example, say you split your residency between Minnesota and Arizona the last two years, but prior you lived in Minnesota full-time. Then you would look to Minnesota’s rules governing exemptions.
In Minnesota you are allowed to choose between either federal or state exemptions, whichever brings the greatest benefit.
Your location will also tell you which federal court your case will be filed in. In Minnesota we have four, St. Paul, Minneapolis, Fergus Falls, and Duluth. The county you live in determines where your case will be filed. The county you live in also determines where your 341 meeting will be held.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT
Your attorney will help you navigate through the location aspects of your case and exemptions. Visit www.kainscott.com to speak with an attorney today. You will be glad you did!
