I am sometimes contacted by someone living in a country other than the United States about filing bankruptcy. It’s often someone originally from the United States who is currently living in another country but who has debts originating in the United States or with creditors located in the U.S. Filing for bankruptcy in the United States while living in another country is possible under specific circumstances. The key factor is whether the individual has sufficient ties to the United States to establish jurisdiction. Here are the main requirements:
- Jurisdiction
To file for bankruptcy in the U.S., you must meet at least one of these criteria:
- Residence: You live in the U.S. (even temporarily).
- Domicile: The U.S. is your permanent home or where you intend to return.
- Property: You own property or assets in the U.S., even if it’s just a bank account or other minimal assets.
- Business Connections: You conduct business in the U.S.
- International Considerations
- Foreign Creditors: If you have creditors in your home country, they may or may not be bound by a U.S. bankruptcy discharge. Local laws in the foreign country determine this.
- Dual Filings: In some cases, individuals file for bankruptcy in both their home country and the U.S. to cover all debts.
Today, most bankruptcy proceedings are handled electronically but if problems arise in the case some courts may require your presence for certain hearings. This would need to be considered before deciding to file the bankruptcy. In most cases, however, filing bankruptcy for someone who lives in a different country is no different than filing bankruptcy for someone residing in the state of Iowa. If you’re living abroad and have at least some contact with the state of Iowa as mentioned above contact Nancy L. Thompson Law Office PC about filing bankruptcy.
