subject: In Which State Should I File Bankruptcy? [print this page] The culture of StThe culture of St. Louis invites you to consider the entire metro-area as "St. Louis." The truth is the Mississippi divides us and changes the laws we must follow, including the rules and regulations for bankruptcy. To add to the confusion, many of us live in Illinois and work in Missouri or vice-versa. So, if you spend time in both states, which one should you file bankruptcy in?
Your filing state for bankruptcy is the one in which you've lived for the 3 months before you file your bankruptcy case. For example, if you've lived in Illinois for the past three months, you wouldn't be able to file a Missouri chapter 7. You must file in Missouri. Now, if you've lived in multiple places for the last 3 months, you must file in the state that you've spent the majority of your time (91 days or more).
It is easy to think that there is a way to take advantage of the system, a state to file in where you'll have more success--which leads us to the question of where to file. Neither state is necessarily a better state to file bankruptcy in but they do have some key differences between them. The main differences between Missouri and Illinois bankruptcy filings will be the trustee, the exemptions, and the local court rules.
Keep in mind, however, that certain districts put certain rules in place because they are most appropriate for the people living in their jurisdiction. At the end of the day, it is best to file where you are supposed to file. Not only could you risk an objection from the Trustee by filing in the wrong state, but you could also put your own financial future at risk. It truly isn't worth trying to cheat the system.
If you aren't sure where to file Missouri or Illinois bankruptcy, the best place to start is with an experienced St. Louis bankruptcy attorney. Look for an attorney who understands the rules and exemptions and knows the trustees on both sides of the river. If you start off with the right attorney, you'll be able to get the most out of your case, regardless of where you file. He or she should be able to get you the protection from foreclosure, credit card debt help, and relief from creditors you need while still using the exemptions and local rules to protect your property and family.
