Can I Choose Where I File Bankruptcy?

The culture of St. Louis invites you to consider the entire metro-area as "St. Louis." The truth is the Mississippi divides us and changes the laws we must follow, including the rules and regulations for bankruptcy. To add to the confusion, many of us live in Illinois and work in Missouri or vice-versa. So, if you spend time in both states, which one should you file bankruptcy in?

Your filing state for bankruptcy is the one in which you've lived for the 3 months before you file your bankruptcy case. For example, if you've lived in Illinois for the past three months, you wouldn't be able to file a Missouri chapter 7. You must file in Missouri. Now, if you've lived in multiple places for the last 3 months, you must file in the state that you've spent the majority of your time (91 days or more).

It is easy to think that there is a way to take advantage of the system, a state to file in where you'll have more success--which leads us to the question of where to file. Neither state is necessarily a better state to file bankruptcy in but they do have some key differences between them. The main differences between Missouri and Illinois bankruptcy filings will be the trustee, the exemptions, and the local court rules.

Keep in mind, however, that certain districts put certain rules in place because they are most appropriate for the people living in their jurisdiction. At the end of the day, it is best to file where you are supposed to file. If you attempt to thwart the system, the trustee could catch you and send you back to the right district, defeating the purpose of lying in the first place. There isn't much point in trying to get away with filing in the wrong state.

If you aren't sure where to file Missouri or Illinois bankruptcy, the best place to start is with an experienced St. Louis bankruptcy attorney. Find a lawyer with knowledge of both sides of the river, including their respective trustees, exemptions, and local rules. By beginning your bankruptcy filing with a great attorney, you give yourself the best opportunity for a success case, no matter which state you file in. He or she should be able to get you the protection from foreclosure, credit card debt help, and relief from creditors you need while still using the exemptions and local rules to protect your property and family.

About The Author Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You can request a free copy at http://www.castlelaw.net