Can Non-Citizens in the U.S. File for Consumer Bankruptcy?


If you are a recent immigrant to the Chicago area and do not have residency status, what are your rights with regard to personal bankruptcy? More specifically, are Chapter 7 bankruptcy and Chapter 13 bankruptcy options that are only available to U.S. citizens? If you are permitted to seek consumer bankruptcy protection as an immigrant, can a potential bankruptcy discharge impact your immigration status?

These are all important questions, and it is always essential to speak with an experienced Oak Park bankruptcy lawyer before you make any plans to file for bankruptcy. Bankruptcy laws are quite complicated, even if know that you are eligible to file for bankruptcy. When there are additional issues compounding the complexity of your case, such as immigration matters, it is particularly important to seek advice from a legal advocate.
Who May Be a Debtor According to the U.S. Bankruptcy Code?
To gain a better understanding to the questions we presented above, it is first important to determine who can legally be a “debtor” entitled to bankruptcy protection under the U.S. Bankruptcy Code. Under 11 U.S. Code Section 109, “only 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.” What does this mean in practice? Generally speaking, if you are not a U.S. citizen, but you fall into one of the following categories, you may be eligible to file for personal bankruptcy:
  • You currently reside, or are domiciled, in the U.S. (and have a permanent U.S. address, as well as other documentation to back up this claim);
  • You have a place of business in the U.S., such as a branch of a company you own; and/or
  • You have property in the U.S. or within a U.S. municipality, such as a second home, or sometimes even a vacation property.
There are a number of exceptions, however, and it is important to speak with a bankruptcy lawyer to ensure that you are not prohibited from being a debtor due to one of these exceptions. This is especially important if your personal bankruptcy questions are tied to the possibility of business bankruptcy.
Bankruptcy Complications for Immigrants
As you can see, you do not have to be a U.S. citizen in order to qualify as a debtor under the Bankruptcy Code. Even recent immigrants to the U.S. who are living in the Chicago area may qualify for personal bankruptcy, as long as they can prove that they are now residing in the U.S. At the same time, however, there are some important requirements for filing for bankruptcy even if you are not a U.S. citizen. Most immediately, you will usually need to have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
As Rule 4002 of the Federal Rules of Bankruptcy Procedure explains, the debtor has certain duties when filing for bankruptcy, and one of those duties involves providing specific forms of identification. Even for an immigrant, it should not be impossible to obtain an ITIN, especially if you are planning to work in the U.S. and to pay taxes. If you do not have a Social Security Number, you will typically be required to obtain an ITIN before you can file for personal bankruptcy.
Do you have questions about filing for bankruptcy? An Oak Park bankruptcy attorney can assist you. Contact the Emerson Law Firm today to learn more about our services.
See Related Blog Posts:

Comments

Post a Comment

Popular posts from this blog

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more