What if I’m from out of state?

Obscure background:

When the Bankruptcy Code was overhauled in 2005, Congress addressed a phenomenon whereby petitioners would shop for superior state bankruptcy exemptions.  For example, in the Lone Star State, you can protect unlimited home equity. . . well, it’s limited to 10 acres in town (or 100 to 200 out in the bush, as my old Aussie friends would put it).  So, to protect (Texas) bankruptcy courts from overcrowding, the House established residency requirements. 

The answer:

You need to abide by residency requirements in order to use California’s bankruptcy exemptions.  Otherwise, you’re to use federal bankruptcy exemptions or your former state’s bankruptcy exemptions.

You must have made California your home for 2 years in order to use its bankruptcy exemptions.

If you’ve lived in California for less than 91 days, it’s not just a question of exemptions: you need to actually file for bankruptcy in your former state (or wait out the 91 days).

If you’ve lived in CA between 91 days and 2 years, you will use either 1) the federal exemptions or 2) the exemptions of the state where you resided the majority of the time during the 180 days preceding the 2 years before filing for bankruptcy protection.  Yes, that’s all worded correctly. 

What if I’m from CA, but not San Diego County?

You will need to file for bankruptcy protection within the federal district where you resided for the majority of the last 180 days.  San Diego and Imperial Counties belong to the Southern District and its Bankruptcy Court is the handsome, columned building on West F. St.  If you’re from Rancho Cucamonga, for example, you’d need to file your bankruptcy in the Central District’s Riverside Division.  I just like saying, Rancho Cucamonga.  Sorry. 

Note: location of: domicile, principal place of business, principal assets, or particular pending cases, also determine which district you’d file in.

General Bankruptcy Questions

General Bankruptcy Questions

1. background and chapters
   

2. eliminating debts
   

3. your home
   

4. your car and other property
   

5. exemptions
   

6. credit score
   

7. spouse/co-signers
   

8. automatic stay
   

9. filing for a second time
   

10. residency requirements
    

11. miscellaneous
    

Chapter 7 Bankruptcy

Chapter 13 Bankruptcy

What NOT to do

Why do I need an attorney to file?

Rates and Payment Methods