A lot of bankruptcy cases start when you file bankruptcy documents with the United States Bankruptcy Court. But with 94 government territories– each with a bankruptcy court– it isn’t constantly easy to determine where to start. Issues might be much more complicated if you’ve relocated lately or you own business properties. Jack Setters will help you figure out where you must file your bankruptcy case.
Bankruptcy Filing Rules
Two things establish where you ought to file: where you’ve lived lately as well as where your business possessions are located. Particularly, you’ll file in the bankruptcy court located:
- where you have actually lived or kept a long-term residence for the 180 days immediately before you file
- where your principal workplace is located or where your possessions are for the 180 days before you file, or
- if you have just recently moved, where you lived, kept a long-term residence, maintained your principal place of business, or had properties for the greater portion of those 180 days.
The general idea is that the court desires it to be straightforward for the bankruptcy trustee– the individual chosen to provide your instance– to examine and, if necessary, to sell your possessions in a Chapter 7 case without sustaining unneeded costs.
Filing for Bankruptcy Close to Home
For many people, the proper declaring area is close to home– the government district in which you have lived for the 180 days immediately prior to filing (not your local state court). Nonetheless, some districts cover big areas so the bankruptcy court may not be as close to your house as you ‘d like.
The majority of large districts have numerous areas– some of which approve bankruptcy filings, yet not all.
Where to File If You Moved Recently
If you relocated within the last 180 days, the proper place to file your bankruptcy case is the place where you lived for the majority of the 180 days. For instance, if you lived in California for the last few years, yet relocated to Arizona 2 months ago, California is still the correct place for your bankruptcy since it was where you lived for 120 days of the 180-day period prior to the filing.
Filing in the Wrong Place
The bankruptcy court won’t refuse to accept your bankruptcy papers if you are filing in the wrong location, but you can expect the trustee to bring the matter before the judge. If the court finds the current location will cause your creditors to be prejudiced or unfairly disadvantaged, or if the trustee could better administer your case in another jurisdiction, the court has the option of dismissing or transferring your case.