What to Know When Moving During Bankruptcy

Sep 17 2025 15:00

Your Case Stays in the Original Court

It's important to remember that your bankruptcy case remains in the jurisdiction of the original court where you filed. Even if you're planning to move out of state, the proceedings continue as usual. This is because bankruptcies are filed based on your residency or asset location within the 180 days prior to filing. Moving does not automatically transfer your case. If a transfer is desired, you must file a motion, notify your creditors, and attend a hearing where the judge will decide, based on justice and convenience.

You Must Still Meet All Bankruptcy Obligations

Relocating does not absolve you of your bankruptcy responsibilities. You'll still need to attend any scheduled hearings, complete mandatory debtor education courses, and continue with required payments, which is particularly crucial for Chapter 13 cases. Neglecting these obligations or missing deadlines can lead to severe consequences, possibly derailing your bankruptcy process.

Your Bankruptcy Exemptions Depend on Past Residency

Another crucial aspect of bankruptcy to consider when moving is the impact on your exemptions. These exemptions are determined by where you lived in the two years before filing. If you have changed residences often, the state of your primary residence during the 180 days before that two-year period might apply. If that state doesn't allow non-residents to use its exemptions, federal exemptions might become an alternative.

Extra Considerations for Chapter 13 Cases

In Chapter 13 bankruptcies, which include a multi-year repayment plan, your payments should continue to be made to the current trustee unless a transfer is approved by the court. Should your move affect your income or expenses significantly, this could necessitate court approval to readjust your budget.

Updating Your Address is Critical

Ensure that you update your address with the court and your trustee as soon as possible. Failing to keep your contact information current can result in missed legal notices, causing delays or even jeopardizing your bankruptcy discharge. Staying proactive about such updates is essential for the smooth completion of your case.

Even though relocating doesn't interrupt bankruptcy proceedings, adhering to court requirements remains paramount. Plan your move carefully, update your address promptly, and consult with a bankruptcy attorney to ensure all aspects of your case are handled correctly. Seeking professional guidance before making a big move can provide you with the reassurance and expertise needed to navigate this complex period successfully.