Bankruptcy in Indiana for someone who just moved to New York?

[ccdebtor]

Hi folks! I'm a bankruptcy newbie and this is my first post.

The main question here is should/can I file bankruptcy in Indiana or New York? I ran up credit card debt in Indiana, but am currently "visiting" New York (just got here). I am currently unemployed and sleeping on a friends floor and not paying rent anywhere. I own no real estate and my assetes are few. I feel like I'm homeless. I have an Indiana driver's license.

The summary is above. The details are below.

---

Unfortunately, I'm unemployed and I've run up quite a lot of credit card debt, more than $55000. I ran up the debt over several years while living in Indiana, but I'm currently sleeping on the floor at a friends place in New York state and looking for a job. I am not married.

My assets are few:

• an old car
• clothes
• 2 ancient (7+ years) PCs of minimal value
• assorted personal bric-a-brac which is not worth much.

If I'm going to get/keep a job I need the car. I'm not sure what the value of the car is ... see below. I believe that the car is in "good condition," not fair or very good.

Car value via Kelly Blue Book
Trade in value (at a dealer) of my car in "good condition" is $3400.
Private party value (private sale) of my car in "good condition" is $4700.

But, if I look on AutoTrader.com it seems like the car sells for more like $7000 - $8000.

I haven't been in default for very many months. I'm broke and won't be able to keep current on the credit card accounts unless I get a decent job. I suspect that I can get a decent job sometime in the next few months. I realize that having a terrible credit score will impair my ability to get a decent job. I had a bunch of money that I was making the payments with, but that money is now gone.

The wildcard bankruptcy exemption in Indiana appears to cover up to $9,350 of personal property. I could likely keep my car.

On the other hand, the personal property exemption in New York is $4000 for a vehicle (via Debtor & Creditor 282).

I assume that because I have few assets and no income that I would file a chapter 7 bankruptcy. On the other hand if I get a decent job I may be able to pay the debt off over several years.

I probably would only file bankruptcy if/when I get sued by one of the credit card companies.

---

MAIN QUESTIONS: It seems that it is possible (even mandatory) for me to file bankruptcy with an Indiana court because I lived there for several years and am only recently/currently "visiting" New York and have no fixed place where I live. Am I understanding that right?

Anybody have any advice for me about:

• filing bankruptcy in one state while being in another state?
• my having no fixed place of residence?
• filing bankruptcy in Indiana?
• filing bankruptcy now, as opposed to waiting for a law suit to happen?

---

Thank You!

[keepmine]

You may file in the state where you spent the majority of the previous 180 days. So, on day 91 of living in NY you could file there but, you must still use In. exemptions until you live in NY for 2 years.

I'd be in no hurry to file. You want a basic safety net in place. After all, you still have to support yourself post bk. Get a job with health insurance bebefits and a place of your own first.Then, make the decision on bk.

[justbroke]

Well, the technicality of where you can file has to do with residency. If you are not living in NY and only "visiting", then you are either a resident of Indiana or you are not really "visiting" NY. The rule for filing for "venue" -- that is "where" you can file -- is where you spent the better part of the 180 days immediately preceding the filing. So, whichever place you actually live for 91+ days of the 180 days.

keepmine is right on target with the other part of filing, and that is which exemptions you get to use. Many states have residency requirements in order to use the exemptions and it looks like you'd need to use Indiana exemptions anyhow. You might be able to use the federal exemption scheme as well.

Like keepmine, I don't know what your timeline is to file and what is pressuring you to file right now. Hopefully you can get off the floor and on your feet soon.

[kornellred]

There may be special exceptions, but as a general rule, you must file for bankruptcy in the state where you have established residency. Being from Indiana and living in New York constitutes an obstacle for you, since you must enlist the services of an attorney who practices in Indiana, and attendance at the 341 meeting is mandatory.
With 55K in unsecured debt hanging over your head, a lawsuit or two within the next few years is likely, but you are judgment-proof as things stand right now. Once a money judgment is in place, your creditors will chase you essentially forever, in which case bankruptcy will become your sole remedy.

Best of luck to you.

[despritfreya]

CC,

I see you found your way to this Forum - a much better one for bk info than where I just posted a response.

My learned colleagues above have given great answers but. . . . drum roll please . . . . If I am reading things correctly, none picked up on the limits of using Indiana exemptions. From my reading of the statute, you must be domiciled in Indiana to use its exemptions. If you are not domiciled in that state you will be using Federal exemptions.

Des.

[justbroke]

Thanks Des for clarifying! I was too lazy, I suppose, to look at the more technical aspect of Indiana exemptions. Of course you are correct that residency limits can also be placed on the exemptions! But, the Federal Exemption scheme isn't so bad!

[ccdebtor]

Thank you all for taking the time to reply and give all this great info!

Particular thanks go out to despritfreya for replying in the way that they did.

The credit card debt is split somewhat evenly between several companies. I'm not going to give the company names, sorry.

I have no real estate so I won't be claiming any exemption in that area. It seems that whichever I fall under, the Indiana exemptions or the federal exemptions, that the wild card exemption will cover my old car. That's the only thing I've got that is worth anything. I'll be needing it to get to whatever job I can find.

Again, thanks to all.