A Resident of Another Country Wants To File Bankruptcy in Florida

Can a person who currently resides in another country file bankruptcy in Florida? A client called to discuss elimination of his credit card debts which he accumulated while living in Florida. The client and spouse recently moved from Florida and now permanently reside in a foreign country. They own no real property in Florida. The client and spouse have a bank account in Florida with a small balance- under $1,000. Most of their assets are in the foreign county. They have no money in any state other than Florida. The client wants to file Chapter 7 bankruptcy in Florida.

In almost all cases, bankruptcy debtors file bankruptcy in the state where they permanently reside. However, the bankruptcy code does not make residency the only criteria for determining place of filing. Simply put, the bankruptcy Code allows you to file bankruptcy where you live, where you do business, or where you have most of your assets. After researching the issue I found two Florida bankruptcy cases which allowed a person to file bankruptcy in Florida after they moved abroad as long as they still had assets in Florida and in no other state. In one case, a debtor’s bank account with a $200 balance was sufficient contact with Florida to permit him to file Chapter 7 bankruptcy here.

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