Can a US citizen permanently living overseas file for bankruptcy in order to clear unsecured debt in the US?

Answer 1

My best guess to that question is "it depends." You have to have resided or had your principal assets in a U.S. district for 91 days, basically, to file bankruptcy in that district. 11 U.S.C. 1408 requires that one live in a district for the greater part of the preceding 180 days in order to file a bankruptcy in that district, though there are some minutia regarding this code section that should be discussed with an attorney. So, if by "living abroad" you mean can someone living in Germany file bankruptcy in the U.S., I would say "yes" if they lived in the U.S. for the greater part of the preceding 180 days, or if their principal assets are in the U.S. But, if their principal assets are in Germany, and more than 91 days have expired since they moved out of the U.S., then I'd say "no." But, if by "living abroad" you mean an American soldier stationed in Germany but who calls Indianapolis home, and who has an Indiana driver's license, etc., then I'd say "yes" since that person's residence is still the U.S. It should also be noted that one must appear at a Meeting of Creditors hearing (also called a "341 hearing"), so living abroad may make this difficult or expensive unless the bankruptcy trustee is willing to do a telephonic hearing. A person does not have to be a citizen of the United States to file bankruptcy here. 11 U.S.C. 109 says "a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor" in bankruptcy in the U.S. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.

Answer 2

It doesn't matter if you are a US Citizen or not, to file bankruptcy. To be eligible you must either reside in a state, own a business in a state or own property in a state. If you don't have these three, you cannot file bankruptcy also. Also, you must have resided in a state for 180 days prior to filing bankruptcy. Otherwise, no court has jurisdiction over you. By permanently living overseas, you cannot file bankruptcy in the US until you return to the US and PLAN to stay there.

Answer 3

No, you don't have to be a resident. If you are a non-citizen, but have a Social Security card or a Tax ID, you can file a bankruptcy. If you don't have a United States ID, but own property in the U.S., you can still file a bankruptcy.