Is Filing for Bankruptcy the Right Option?

Filing for Bankruptcy relief is not always an easy choice, and many factors are involved in making the determination as to whether it's the right choice for you.

Can I file bankruptcy?

The Bankruptcy Code has certain time limitations on how many times an individual can obtain a bankruptcy discharge. There are also complicated bankruptcy rules regarding the calculation of income and expenses, which determine whether you qualify for a chapter 7 or a chapter 13 bankruptcy. The Bankruptcy Code and the Rules pertaining to Bankruptcy are complicated and must be interpreted in the context of current case law as well as in relationship to other bankruptcy rules. Certain sources of income may not be included in that calculation and sometimes the type of expenses that you may be used offset the income.

If I'm allowed to file Bankruptcy, where can I file my Bankruptcy petition?

This sounds like an easy question, but it can get complicated because there are 94 federal judicial districts in the United States -- each with a bankruptcy court,

Under the law, you can file your bankruptcy case in the court located:

1) where you have lived or maintained a permanent residence for the 180 days immediately before you file

2) where your principal place of business is located or where your assets are for the 180 days before you file, or

3) if you have recently moved, where you lived, maintained a permanent residence, maintained your principal place of business, or had assets for the greater portion of those 180 days. If you have lived in two states in the last 180 days, you can file in the state where you have lived at least 91 days (because the most you could live in any other state in the 180 day period is 89 days. 91 days > 89 days.) If you have lived in three or more states in the last 180 days, you can file here if you have lived here more than you have lived in any of the other states.