There is no good time to file for bankruptcy. Sometimes, you are so underwater that you have no other choice. If the timing happens to coincide with a move out of state, is it allowed? Or do you have to remain in the same place after filing for bankruptcy?
You Can Move After Filing for Bankruptcy
The answer is yes. You can move after filing for bankruptcy. There are no rules that limit what you can do after you file.
On the other hand, if you move into a state right before filing for bankruptcy, it is possible you will not qualify for some state-specific exemptions in the process.
Exemption laws vary from state to state and determine which assets you can protect. For example, if one state lets you save your property and vehicle from bankruptcy and you move to a new state offering even more exemptions, you must first meet a minimal residency requirement.
In one case, if a state requires you to live there for at least two years to receive the state-specific exemptions, you will not qualify. This rule is in place to discourage state-hopping in order to find the best-suited bankruptcy laws for your case.
Rebuilding After Bankruptcy
No matter where you live, you will turn a new leaf after filing for bankruptcy. Focus on keeping a steady income and spending less than you bring in each month. If you fall into the same habits, you will create a destructive cycle for yourself.
Instead, build a budget each month and track what you spend. Break old habits by building a good reputation with your landlord, bank, and credit. Enjoy how much freedom you buy yourself when you put in the effort to rebuild after bankruptcy.
Contact an Experienced Team
Sort out your finances with the help of Miles & Hatcher, LLP. If bankruptcy is the answer, we can help you navigate the process with minimal difficulty. We know how painful the bankruptcy decision can be. Let us help you through this challenging time so you can come out on top. Contact our team to arrange a meeting: (909) 481-4080.