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Residency Requirements for a Bankruptcy Case Experienced bankruptcy attorneys know how substantially bankruptcy rules and requirements can vary from state to state, including the available homestead exemptions, general exemptions, and the income and spending requirements to qualify for Chapter 7 bankruptcy under the means test. Due to these
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differences, some people may wonder whether they can move to a different state briefly in order to benefit from more lenient bankruptcy laws and exemptions. This is commonly called “forum shopping,” and is
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generally not a realistic notion due to the residency requirements for bankruptcy cases. In 2005, Congress set out to reduce the potential abuse of bankruptcy laws by passing the Bankruptcy Abuse
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Prevention and Consumer Protection Act of 2005 (BAPCPA).[1] Despite claiming they based the changes on “consumer protection,” the changes made by the Act are generally unfavorable for consumers and tend to
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favor businesses filing for bankruptcy instead. In addition to other restrictions for Chapter 7 eligibility, BAPCPA also set out stricter residency rules for certain aspects of bankruptcy cases. Filing the Petition
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The federal United States Bankruptcy Code[2] governs bankruptcy cases; therefore, you must file bankruptcy
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petitions in federal court. However, you must determine in which federal district court you must file your petition, which depends on where you live. BAPCPA did not alter the filing residency requirements for bankruptcy, which are as follows: Based on the majority of the past 180 days, (i.e., 91 days) you can file in any of the following districts: Where you lived Where you keep your primary assets
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