Where to File a Chapter 7 Bankruptcy
A bankruptcy case must be filed in the federal district where the debtor has maintained his residence or principal place of business “for the one hundred and eighty days immediately preceding such commencement, or for a longer portion of such one-hundred-and-eighty-day period.” 28 USC 1408. In laymen’s terms, the case must be filed in the bankruptcy district where the debtor has lived for the longest portion of the last six months. If joint debtors reside in tow different federal districts, it may be proper to choose either location. If the venue of your case is challenged, the burden of proof is on the challenging party to prove the case should be moved to another district.
In most cases the proper venue will be clear. However, in cases involving joint debtors with separate residences or debtors, who have recently moved a decision as to where to file the bankruptcy proceeding is necessary. While the federal exemptions remain consistent, not all exemptions offered under state law are equal. Depending on the situation, it may benefit the debtor to file a bankruptcy case right away to take advantage of the exemptions offered in their prior jurisdiction while others may benefit from waiting until they establish residence in a new jurisdiction. Although the benefit of waiting may not be available to every debtor, a knowledgeable bankruptcy attorney can assist a debtor in making the decision where to file a Chapter 7 bankruptcy case.
