I just moved, can I file for Bankruptcy?

The answer is Yes, but you may not want to.

I want to move, can I file when I get to my new home.

The answer is No, you have to wait at least 90 days, but then Yes, and you may want to.

Moving became much more complicated after 2005 when the Bankruptcy Code was amended to provide that Exemptions taken by a Debtor who has moved within 2 years will be governed by the law of the state that they moved from, not by the law of the state they live in when they file.

So, if you move to Texas from Arkansas and then file for Bankruptcy within 2 years, you will have to claim Arkansas exemptions. This provision was put in place to prevent border jumping. Many people prior to 2005 would move from one state to, for instance, Texas or Maine, because the exemptions there were much more generous than the exemptions were in their old home state.

If you are planning on moving, and your debts are causing you concern, you should add consulting with a Bankruptcy attorney to your to do list before you may the move.

Scroll to top