I want to file bankruptcy but do not live in the state where we own our home, which is paid for. (Our daughter lives there but does not pay rent.) We moved to another state for work and my husband became disabled but I stayed on my job there. The home is in Texas and we rent in Georgia. How would this effect a filing of bankruptcy.
Response: You can still file in Texas if majority of your assets are still in Texas. Under 28 U.S.C. Section 1408, a debtor may commence a bankruptcy case in any federal judicial district in which the domicile, residence, principal place of business, or principal assets of the debtor have located for 180 days prior to the bankruptcy petition, or for a longer portion of that 180 days than any other district. If you file in Georgia, you have to claim Georgia exemptions, which would result in your losing most of the equity in your home because Georgia only allows a maximum of $43,000.00 for homestead while in Texas homestead is unlimited. See OCGA §44-13-100(a)(1). Also see Texas Constitution Articl 16 Sections 50, and 51; Texas Property Code Sections 41.001 and 41.002.
I don't have a legal bent so I don't understand the legalese. To clarify; we have lived in Georgia since 2007. How does that effect the potential for bankruptcy, and CAN I file on Texas if still living in Georgia. The assets we have are our home and my husbands small 401K. Wouldn't our 'principle place of business' be where I work, which is Georgia?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).