Non US residents filing for bankruptcy in US.

Written by: leonora  |  Published on: March 15th, 2010  |  Category: Blog

If you are living abroad, but have accumulated debt in US that you would like to discharge through bankruptcy, can you file and if so where? The specific question is where will the venue be proper?
Assuming that you don’t have a US domicile, residence, principal place of business, you can still file where you have principal assets for a longer portion of one-hundred-eighty-day period.

You can file in any district where you have majority of US assets.

28 U.S.C. Section 1408 provides in relevant part that “…a case under title 11 may be commenced in the district court for the district….(1) in which principal assets in the United States, of the person or entity that is the subject of such case have been located for the one hundred and eighty days immediately preceeding such commencement, or for a longer portion of such … period than ….in any other district … .”

For example, if you no longer have ties to US, you can hire my office and I will open a bank account in your name, or will deposit your money in a client trust account for a period of 91 days prior to filing, giving you Central District of CA as the proper venue. In the alternative, if you have a bank account that you opened while residing in US, you should consider using that district for your bankruptcy filing.

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