Can Debtors File Bankruptcy in Florida While Caring For Parents in Another State?

In the past month two prospective bankruptcy clients presented the same issue with similar facts. The debtors had moved to Florida in the past year and rented apartments intending to get a job and reside in Florida. Soon thereafter, the debtors each had parents living outside Florida who suffered medical problems requiring ongoing care. The debtor’s moved in with their parents outside of Florida. Because they debtor’s job search had been interrupted by their parent’s illnesses they had continued to accumulate credit card debt which they could not repay. They wanted to file bankruptcy in Florida. They asked if they should be filing in Florida even though they currently resided with their parents in different states.

The debtors should file where they permanently reside. If they currently intend Florida to be their permanent home then they file in Florida. Both debtors stated they hold Florida drivers licenses and have licences in no other state. They listed their Florida address on their 2008 federal tax return. Because they moved to Florida less than two years ago the exemptions applicable to their bankruptcies are the exemptions of the state they moved from (assuming they were in that state for two years or more). I think they file in Florida even though they current reside (on a temporary basis) in their parents’ home states.

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