What state should we file in?

[MollyB]

My husband and I have been discussing filing Ch. 13 for some time now, and it looks like that will be the best way to handle our debt. I have questions before we even get to a lawyer, of course.

The first one is: in what state should we file? We own a house in NC, which is where I live and work. My husband has an apartment in MI, where he lives and works. This started out as a temporary situation with a job change, and never was intended to be a long-term solution. We originally wanted to sell the house and move us all up to MI, but now we're thinking seriously about surrendering the house.

We pay taxes in both states. He's registered to vote in MI and has a driver's license there, and I vote and hold my driver's license in NC. Does residency matter? Does homeownership matter? Could it possibly be as simple as which state benefits our situation the best? Any suggestions or guidance would be very greatly appreciated.

MollyB

[lrprn]

Hmmmmm....interesting situation. It sounds like you could make a case for residency in either state. Have each of you lived in each state longer than 2 years?

Your best bet is to set up several free initial consultations with experienced NC and MI bk lawyers to get their opinions about which state would be best to file in. Also take a look at both states' bk exemptions to see which appear to be most favorable given your family's financial circumstances (assets, secured and unsecured debt, living expenses, etc).

Out of curiosity, which location does your family spend the most time in?

[MollyB]

We moved to NC five years ago and bought the house. I've been in residence the whole time. My husband took the job in MI two and a half years ago, and he's been living there since then. I'm thinking that driver's license/voter registration/taxes filed are official proof of residency -- is that right?

As far as where we spend the most time -- that's probably an even split. He comes to NC for four or five weeks during the year, and I go to MI maybe two or three weeks. We don't have children, so the "family" part consists of my elderly mother who lives with me in NC, and the dogs and cats.

Thanks very much for your help! We'll get looking at the specifics for NC and MI, and set up a few of those initial consultations in both states. I'm always open for more guidance and suggestions.

MollyB