How Does Residency Relate to Your Bankruptcy?
Some states have lists of assets that are exempt when filing bankruptcy and debtors can choose whether to use the federal list of exempt assets or the state’s. Not all states allow you to choose, but Pennsylvania is an either/or state that allows you to decide whether to use the state or federal government’s exemptions. However, if you recently moved to Pennsylvania or are planning to move to Pennsylvania, but are also considering filing bankruptcy does this affect bankruptcy filing? Yes, it does.
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA) modified residency periods in relation to bankruptcy. The Bankruptcy Code revision 11 U.S.C.§ 522(b)(3)(A) makes it clear that you have to live in a certain state for two years (730 days) before you can claim its exemptions in bankruptcy. So, unless you lived in Pennsylvania for two years, you cannot use the PA exemptions. However, to determine which state’s exemptions you can claim, the court looks at where you resided during the 180 days prior to the last two years. Looking back, call the two years prior to moving day 730 and call the 180 days prior to that day 910. Where you resided for the greatest period of time between days 731 and 910 is the state law that applies to your bankruptcy exemptions.
Confusing? All the more reason you should consult a bankruptcy attorney. A lawyer can help you compare exemptions for states where you have lived against federal exemptions and devise a plan that offers the most benefit when filing bankruptcy.
If you have questions or concerns about timing your bankruptcy filing, consult Harold Shepley & Associates. We are a Pennsylvania debt relief law firm. Call 1-866-284-7062 or visit us at www.shepleylaw.com.
August 23, 2012 Posted in Bankruptcy Tagged bankruptcy attorney, bankruptcy exemptions, debtors, filing bankruptcy, residency Leave a comment
