Most bankruptcy debtors intuitively understand that they should file their cases close to where they live: Manhattan Bankruptcy is handled in Manhattan, Brooklyn bankruptcy in Brooklyn, and Suffolk County bankruptcy in Central Islip, etc. Because New Yorkers live in dense environs, there can be circumstances where a bankruptcy court in an adjacent jurisdiction is more convenient than their appropriate court, but for the most part they get it right. But just what makes a bankruptcy court “appropriate” for a New York bankruptcy? The answer is what’s legally referred to as, “venue.”<\/p>\n
Title 28 of the U.S. Code, section 1408<\/a>, defines the venue for most bankruptcies. It’s a short, dense statute, but the most of its important aspects relate to debtors’ activities and time in the district in which they are filing. By debtors’ activities I mean their domiciles, residences (there is a difference, which I’ll discuss below), places of business, and assets. The time period is a minimum 180 days in the district, but debtors who have been moving around within the last 180 days may choose the district they have spent the most time in. For debtors whose businesses are already in bankruptcy, they can choose to file in the same district for their convenience.<\/p>\n In rarer chapter 11<\/a> cases, and even rarer still chapter 15 cases<\/a>, venue is appropriate where the debtor’s principal place of business or assets are. If the debtor’s business or assets are located outside the U.S., then its case can be filed wherever there’s a lawsuit pending against it or wherever the interests of justice are best served.<\/p>\n The difference between domicile and residence might be important for some New York bankruptcy debtors. A domicile is a place where a person maintains a home and intends to reside their based on the totality of contacts with the jurisdiction. A residence is merely a permanent home that the debtor does not always return to. For example, a summer home might be a residence but not a domicile.<\/p>\n Sometimes parties (usually creditors) will object to a debtor’s choice of venue if they believe it is improper. Rule 1014<\/a> of the bankruptcy procedure rules outlines how bankruptcy courts can transfer cases, but they can also dismiss cases outright if a petitioner fails to meet the venue statute’s requirements.<\/p>\n New York bankruptcy<\/a> is more likely to have unusual venue situations, especially for business bankruptcies, than other U.S. jurisdictions. It’s close to other states, and many non-New Yorkers transact business here. Although debtors rarely choose the wrong venue for bankruptcy, if you are unsure where to file or if yours is an unusual case, then consulting with an experienced New York bankruptcy lawyer will help you maximize your options.<\/p>\n For answers to more questions about bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced Brooklyn bankruptcy attorney<\/a> Bruce Weiner for a free initial consultation.<\/p>\n Rosenberg, Musso & Weiner, L.L.P<\/strong>
\n26 Court St # 2211<\/strong>
\nBrooklyn, NY 11242, USA<\/strong>
\n718-855-6840<\/strong>
\nhttp:\/\/nybankruptcy.net\/<\/a><\/strong><\/p>\n