AZ state residency requirement for filing a personal bankruptcy petition, chapter 7, chapter 13

Dainen N Penta

The law that discusses where you should file your bankruptcy case in provides, generally, that you must have had a "domicile, residence, principal place of business...or principal assets" in the district where you file for 180 days before the date that you file a bankruptcy case. If you have not lived in Arizona for 180 days, then generally you may still be able to file in Arizona if you have lived there for "longer than" you have lived anywhere else in the 180 day period before your filing (generally this just means 3 months + 1 day, although the answer will depend on your circumstances). The question of where you must file, also known as "venue," can be extremely complicated, so you should definitely consult a bankruptcy attorney in your area.

Another thing to watch out for is that if you have moved to Arizona recently, you might be required to use the exemptions (the laws that set out the property you are allowed to keep) of the state where you lived before, and they might be more generous or less generous than Arizona's exemption laws. Again, it would be well worth your time to consult with an attorney who specializes in bankruptcy, so that you can get advice about your own unique situation.

Jeff Adrian Biddle

Daniel Penta is correct about the timeframes for residency and the exemptions. Arizona uses its own exemptions and does not allow federal exemptions. In some cases this can work to your favor, in others it may not. I recently had a client that moved to Texas from Arizona. She inherited a sizable amount of money which would not be exempt in AZ but could be in TX. Obviously, she is going to wait until she qualifies to file in Texas to take advantage of the better exemptions for her specific property issues.