While you may be eligible to file a Chapter 13 or Chapter 7 bankruptcy, the first question is determining in which state you are entitled to file. In legal terms, this is a question of “Venue.” The bankruptcy statute related to venue is 28 USC 1408. Below is a summary of the statute and an easy test for determining your eligibility.
The Statute
28 USC 1408 establishes the proper venue (location) for filing your bankruptcy case. In the case of individuals, your residency and the location of your assets are used to make this determination. The statute dictates that the proper venue is any place where the debtor has resided more than any other place in the 180 day period prior to filing.
An Easy Test
There are two ways to ask the residency question. If you can answer yes to either question, more than likely you can file in North Carolina.
#1: “Have you lived only in NC for all of the last 180 days?”
#2: “If you believe you have lived in 2 or more places during the last 180 days, then out of the last 180 days, have you lived in NC at least 91 of those days?”
Remember that it takes some time to prepare a filing. If you are coming up on the 180 day or the 91 day mark, you can begin preparing to file. Your attorney will assist in filing at a time when proper venue is established and you can take advantage of the local rules and local venue.
If you have questions about residency, location of property, or anything else related to bankruptcy, please feel free to call me at 704.749.7747. My job is to answer questions.