How Long Do I Need To Live Here To File?

[IOEveryone]

I've lived now in Washington for 19 months. Contained in many websites are reference to a 24 month minimum residency requirement in order to file for that state. In yet another website (bankruptcy-law.freeadvice.com) it indicates that the residency requirement is 91-days.

Because Washington permits people to utilize the Federal Asset Exemption guideline (which will help me keep more of my stuff!), does that also allow for the 91-day option?

Thanks!

[justbroke]

First, there are two different things that you are posting about. I'll deal with the 91 days first. That 91 days is referring to the "venue" requirement. You can only file in a particular venue if you have lived there for at least 90 days, or the majority of your assets (or business) are in that jurisdiction for at least that time. That's the question of venue.

Your first post about 2 years, is about the "exemption" scheme. You must have lived in the State -- or your primary assets are there -- for at least 2 years in order to use that State's exemption scheme. I believe this was done to keep those wealthy folks from transferring their assets to Florida (and converting them into real estate) just before filing in order to enjoy the unlimited homestead exemption! (Yes, it's true... and is why many professional athletes and other celebs own property in Florida... they can never lose it in bankruptcy.)

There are some very special rules if you moved recently (within 2 years). If you did move within 2 years before filing, the special rule states that you must use the State for which you were living the majority of the 180 days immediately preceding that 2 years. For you, that means that if you filed today, you'd go back to February 2009 and then the 180 days before that (back six months) and look to August 2008 - February 2009. It gets even more complex if the State in which you predominantly lived in that lookback (180 days before the 2 years) does not allow you to use State exemptions unless you are a resident!

That usually just means that you fallback to the federal exemptions.

If you have these issues, then you should probably file through an attorney. The federal exemptions are pretty nice though.

[IOEveryone]

Thanks. I previously lived in Idaho and filing there only hurts me. It sounds as if I need to wait another 5 months (if I go down this path).

Will it hurt me to share with my creditors of the time line? I understand the concept of the less they know, the better off you are. However, is there any upside to this tactic that I'm not thinking through?

[daylate]

Hey IO-Here's some potentially good news- Check out this link-http://exemptionsexpress.com/Montana_to_Wyoming.html

If I understand this correctly you need to be an Idaho resident on the day you file in order to use Idaho exemptions. Because that is not the case and you can't use WA exemptions till you lived there for 2 years, your only choice is to use Federal exemptions. As justbroke mentioned above is there is one more hurdle you need to get over. Did you live in Idaho for a period of 180 days immediately prior to February 2009? This solution should work with you. If you lived somewhere else, then use the link I gave you to see what it says about the other state. Could very well be the same as Idaho and require you to be a resident (or domiciled there-i.e. Live there when you file) and again it should work for you.

Have your lawyer check this out. In a similar situation it worked for me. Here's hoping you spent at least 2 1/2 years in Idaho prior to moving.