Can I file for bankruptcy in Indiana if I recently moved here?

July 12, 2017

If you have only recently moved to Indiana, you can still file bankruptcy within the state of Indiana. You do not generally need to go back to your old state to file.  This can be very convenient and cut down of traveling costs.

Indiana Bankruptcy Filing:  You Must Wait 91 Days (The Greater Part of 180 Days)

The bankruptcy code officially states that bankruptcy filers that want to file in their new state must wait “the greater part of 180 days.”  Therefore, in most situations, you must live within your new state for 91 days to file there.  If you have lived in Indiana more than 91 days, you will be able to file in Indiana for bankruptcy.  This can be much more convenient than traveling back to your old state.  It may save you the cost of an airline ticket if your state is too far away to drive.

Indiana Bankruptcy Filing: The Bankruptcy Court Understands You Need a Jurisdiction Where You Can File

The bankruptcy court understand that everyone needs a jurisdiction to file bankruptcy. The court desires bankruptcy relief to be readily available for those who need it. Generally, there is not an excessive analysis of the proper jurisdiction in which you must file bankruptcy.  Therefore, generally extensive proof of residency within a state is not required. If you live in multiple states, generally it is best to pick the state in which you spend the most time throughout the year.  

Indiana Bankruptcy Filing:  Your Bankruptcy Exemptions Do Not Change as Quickly

If you move to a new state, you may be able to file there quickly. However, your bankruptcy exemptions  will usually not change for two years.  The bankruptcy court will allow you to file in the new state in only 91 days.  The court does not, however, allow “exemption shopping” where people move to a new state just to avail themselves of more liberal bankruptcy exemptions to protect their property.  In Indiana just like all other states, you must wait two years before you can avail yourself of the new state’s exemptions. 

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