Bankruptcy

People Without "Green Cards" May File Bankruptcy in Florida

By Jonathan Alper

Do you have to be a U.S. citizen or a permanent resident to file bankruptcy in Florida? A caller asked me today whether he had to have his "green card" before he could file Chapter 7 bankruptcy. You do not have to be a permanent resident of Florida or of any other state to file bankruptcy as long has you have substantial property in this country. Section 109 of the Bankruptcy Code states who may file bankruptcy. The Code says that, "a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor under this title." A person with a business or property, including financial accounts, in Florida may file bankruptcy in Florida even if they are not permanent residents. These same people may not, however, be entitled to claim the Florida banrkuptcy exemptions.

Having permanent residency is important to qualification for certain property exemptions such as the important homestead exemptions. Homestead protection requires that the owner intend to permanently reside in the property. Several courts have held that Florida residents without "green cards" giving them the right to permanently reside in this County cannot have the intent to make a Florida home their permanent homestead.

posted by Jonathan Alper, bankruptcy and asset protection attorney, Orlando, Florida

Full post as published by Florida Bankruptcy Law on December 08, 2008 (boomark / email).