Herbert Ryder
Moving States During Bankruptcy: Key Insights

Your Case Stays in the Original Court

When you file for bankruptcy, it's important to understand that your case is tied to a federal court based on where you've resided or where your assets were located for the 180 days prior to filing. Moving out of state doesn't automatically transfer your case. If you wish to have your case moved, you must file a motion, notify creditors, and attend a hearing where the judge will decide based on justice and convenience.

Your Bankruptcy Exemptions Depend on Past Residency

Exemptions in bankruptcy hinge on your residency history. They depend on where you lived during the two years before filing. If you've moved frequently, the state of primary residence during the 180 days before that two-year period will determine your exemptions. Should that state not allow non-residents to use its exemptions, federal exemptions might be an alternative.

Extra Considerations for Chapter 13 Cases

Chapter 13 bankruptcy involves a multi-year repayment plan, meaning you'll need to continue making payments to your current trustee unless a court approves a transfer. A move can change your income or expenses, requiring court approval for any budget adjustments.

You Must Still Meet All Bankruptcy Obligations

It's crucial to stay compliant with all your bankruptcy obligations despite moving. This includes attending hearings, completing debtor education courses, and making required payments, particularly in Chapter 13 cases. Missing deadlines or failing to comply can have serious consequences.

Updating Your Address is Critical

Don’t forget to update your address with the court and trustee to ensure you receive all legal notices. Failure to do so can lead to delays in your case or even jeopardize the discharge of your debts.

Moving out of state during bankruptcy doesn’t halt your obligations. It’s essential to remain compliant with court requirements, plan carefully, update your address promptly, and seek legal guidance. For those contemplating a major move, consulting with a bankruptcy attorney can provide tailored advice.