The rules concerning the venue of where a debtor can file a bankruptcy case offer a variety of choices. A person or entity seeking bankruptcy may file a case where they:
- Live
- Intend to live permanently
- Work
- Have most of their property
- Have a related person or entity that has already filed for bankruptcy
An excellent example of this would be a client who has just done a short sale of her home in Maryland, goes to school and lives in Pennsylvania, has a job in Delaware but intends to join her husband after graduation in California. For 89 days after her short sale closes she can file a bankruptcy case in either Maryland (principal assets), Pennsylvania (residence) or Delaware (principal place of business). She may also argue that because she intends to permanently reside in California with her husband, that she can file her bankruptcy case there (domicile).
A company can file bankruptcy where they have their headquarters (residence), state of incorporation (domicile) or hold primary assets.
For more information see this article, “Where Should I File My Bankruptcy Case?”
