Bankruptcy unfriendly states?

[sf2007]

I live in Hawaii and I heard that it's "bankruptcy unfriendly state".
Is there such a thing as "bankruptcy unfriendly state"? What about California? Is there a list of bankruptcy unfriendly states?

Thanks.

[coma]

It is. We filed there in 2005, and the Ch& and UST there are not very cooperative at all. They objected because we moved about two weeks prior to filing (old law). THe rent in our schedules was set to go up 1 October, so we had to move to find somewhere cheaper, which we did, but we were penalized for having $1900 rent instead of $2500, which we definitely could not pay.

They also picked through our expenses, none of which were out of line and were actual. They wanted us ro pay mo more than $75 for electricity...I say, lt the trustee live in Waianae in the summer without air and see how it is! Even with surrendering our car which DID have a high payment, we were still left with less than $100, and we ended up converting on the advice of an attorney we never should have hired. She doctored our schedules to creat the disposable income, and now we're really hurting, because we had to move unexpecedly back to the mainland (we're military and he got orders with 2 weeks notice to leave HI), and our income is half of what it was there, but we're still expected to pay the same. We transferred our case here, and lost the lawyer in the process, thank goodness, but we're struggling hard, because there is notihing left legitimately.

Anyway, I digreee. That was my experience. I was old law, so I'm not sure, but I filed close to the change, and I believe that is when they got very stringent.

[HeatherB]

I'm not sure about bankruptcy unfriendly states. But I know there are very strict trustees sometimes. Perhaps if a state is known as "unfriendly" it is due to having a trustee that will pull apart the schedules and demand a reason for every dime and how the figures were come up with???

[JollyGG]

Bankrutpcy friendly and unfriendly states really refers to their exemptions and to a certain degree their other laws.

For example Texas is a very debtor friendly state. They have good bankruptcy exemptions. They let you use state or federal exemptions depending on what fits your situation best. Additionally, they have laws making garnishments of your paycheck difficult and uncommon and creditors cannot force you to sell your house by placing a lien against a home. They may place a lien, but have to wait for you to sell on your own to get their money.

Bankrupty unfriendly states typically don't have very good exemptions and usually don't make it difficult for a creditor to collect a judgements.

[DivorceRuinedMe]

If you don't own a home, Florida used to be a VERY bk unfriendly state exemption-wise. Only 1K for a car and 1K for personal property. The law changed recently to allow 4K for personal property if you don't own a home.

[sf2007]

I got it. Thanks, guys.
Another question. Once I move to another state, what's the minimum amount of time I have to live there to become eligible for filing BK in that state?

Thanks.

[chpxiii]

nevermind...

[dscurlock]

I got it. Thanks, guys.
Another question. Once I move to another state, what's the minimum amount of time I have to live there to become eligible for filing BK in that state?

Thanks.

most states, i think it is 6 months before you can file.

[Bandit]

Interesting thread.
I do not doubt it all, that there are what you could call "bk unfriendly states". and what you could call friendly bk states.
There are some that take all you have & others you could come out way ahead. I am doing my own little researches behind this & will add this thought to it.

They wanted us ro pay mo more than $75 for electricity...I say, lt the trustee live in Waianae in the summer without air and see how it is!

I do not know very many people who can keep an electric bill that low today. Not with more than one person.

[lrprn]

most states, i think it is 6 months before you can file.

This answer is NOT CORRECT.

sf2007, you can file in any state as soon as you meet the state requirements for residency. This varies from state to state.

However, to file in a state and use that state's exemptions, the current bk law requires that you live in that state for 730 straight days (two years). If your home has been located in more than one state over the last 730 days before filing, then you can use the exemptions for the state in which your home was located for the 180 days immediately proceeding the 730-day period "or for a longer portion of such 180 day period than in any other place". (whew!) (See http://www.standardlegal.com/law-lib...w-Changes.html under Exemptions)

Dscurlock, I know you are just trying to be helpful, but please don't answer questions unless you are certain of the right answer or can send the OP to a reliable online source that has the right answer. Bankruptcy is tough enough without having to deal with sorting out incorrect information to boot. Thanks!

[sf2007]

This answer is NOT CORRECT.

sf2007, you can file in any state as soon as you meet the state requirements for residency. This varies from state to state.

However, to file in a state and use that state's exemptions, the current bk law requires that you live in that state for 730 straight days (two years). If your home has been located in more than one state over the last 730 days before filing, then you can use the exemptions for the state in which your home was located for the 180 days immediately proceeding the 730-day period "or for a longer portion of such 180 day period than in any other place". (whew!) (See http://www.standardlegal.com/law-lib...w-Changes.html under Exemptions)

Dscurlock, I know you are just trying to be helpful, but please don't answer questions unless you are certain of the right answer or can send the OP to a reliable online source that has the right answer. Bankruptcy is tough enough without having to deal with sorting out incorrect information to boot. Thanks!

lrprn, thanks a lot!