01 Mar, 2024
Non-citizens or those in the process of becoming citizens can absolutely file for bankruptcy in the United States. The US bankruptcy code requires those who file to have residence, business property, or own some US property. Established status as a US citizen or a permanent resident is not a prerequisite for a successful NJ bankruptcy filing. There is generally a lot of confusion over immigrant rights, and when you combine that with the complexities surrounding bankruptcy law, many folks are intimidated by the process. But Veitengruber Law can help! Here, we will lay out what your rights are as a non-citizen when it comes to seeking debt relief in New Jersey and across the US. Can non-citizens file for bankruptcy in the US? While you do not have to be a citizen or a permanent resident to file for bankruptcy in the US, you will need to present a social security number or an individual taxpayer identification number in order to file. These items are meant to confirm your identity. As long as you have one of those identifiers, you will be able to file for bankruptcy in the US regardless of citizenship status. If you do not have a Social Security Number (SSN) or an individual taxpayer identification number (ITIN), you will need to acquire one or the other. The IRS can issue ITINs for people who are not eligible for a Social Security Number. An ITIN can be issued regardless of immigration status. Can filing for bankruptcy prevent citizenship approval? There are no legal precedents in either immigration law or bankruptcy law that would automatically disqualify an individual from citizenship because of a bankruptcy filing. However, that doesn't mean that aspects of your financial and personal life that are brought to the attention of the court during bankruptcy won’t influence your citizenship application. During the bankruptcy process, the court will take into account the "good moral character" of the filer. This test is meant to determine if the filer accrued their debts with the prior intention to file for bankruptcy, which, if proven, can disqualify you from bankruptcy. Of course, what constitutes "good moral character" is subject to the interpretation of the specific court in which you are filing. If you racked up thousands of dollars in debt for a destination wedding you couldn't afford only to file for bankruptcy immediately—this may be a red flag to the court. Similarly, using bankruptcy law to avoid paying alimony or child support despite having the income to cover these expenses could result in the court dismissing your bankruptcy case. Since your application for citizenship will also consider your moral character, the information uncovered in bankruptcy court information could be used to reject your citizenship application. However, those filing for bankruptcy for legitimate reasons should not be concerned that their bankruptcy case will impact their citizenship, visa, or green card status. The vast majority of those who file for bankruptcy are honest, hardworking people, and we at Veitengruber Law know that. It may be beneficial to discuss your intention to file bankruptcy with an experienced immigration attorney in your local area. Bankruptcy is a matter of public record, meaning anyone can access it. An immigration attorney will be able to help you determine if filing for bankruptcy is a smart move in your specific situation. How could bankruptcy affect my citizenship case? The only time bankruptcy would impact your citizenship case is if, through the bankruptcy process, it is found that a crime was committed. For instance, if you provide false financial statements, are found to lie under oath, or omit key information or assets from your application, your bankruptcy petition may be denied. This could lead to criminal prosecution. You could even be removed from the US and barred re-entry. This is why it is essential to be completely honest on all bankruptcy documentation. Will my bankruptcy case increase my risk of deportation? Bankruptcy judges, court workers, and attorneys are unconcerned with your immigration status. None of these individuals are required to report to immigration services if they suspect you are undocumented. Again, the only way a bankruptcy filing may impact your status is if you are not truthful with the bankruptcy court. This includes any attempt to defraud the court, perjury concerning your status, or the use of illegally acquired identifying information. Otherwise, filing for bankruptcy is no more likely to lead to your deportation than a speeding ticket. How will bankruptcy affect my employment? As with all bankruptcies, yours will be reported to credit reporting agencies and will have an effect on your credit score. Regardless of your citizenship status, your credit score will take a hit. Depending on your credit score before filing, your score can decrease a lot or a little, but it will decrease. Bankruptcy w ill also remain on your credit report for ten years if you file Chapter 7 and seven years if you file Chapter 13. The good news is that it's possible to start repairing your credit score right after your bankruptcy discharge, but it will take some time. As long as your bankruptcy remains on your credit report, it may limit your future financing opportunities as well as prohibit some employment offers. However, continuing to hold on to unmanageable debt could have a similar negative effect on your credit score and credit report. Even if filing for bankruptcy initially prohibits you from some financial or employment opportunities, it will open the door to a fresh path moving forward. Should I file for bankruptcy if I am sponsoring someone trying to get a visa or citizenship? If you are sponsoring a spouse or significant other's visa, filing could impact their application, although not always. The federal employee who reviews immigration cases will consider your financial situation when they are examining your significant other's case. If they believe that you have a precarious financial situation, this can impact how they view the application. However, a previous or current bankruptcy case is not an automatic reason for a visa to be rejected. Discussing your options with a bankruptcy attorney and an immigration attorney will help you determine if filing for bankruptcy is right for you. Can I file for bankruptcy if I do not read or speak English? Yes! You are not obligated to read or speak English with any fluency to file for bankruptcy in the US. An experienced bankruptcy lawyer and their legal team will work with you to complete paperwork, provide documentation, and ensure you understand the process. Bankruptcy is a legally viable debt relief option for non-US citizens. As long as you can provide proper documentation, your citizenship status will not impact your bankruptcy case. Similarly, your bankruptcy case will not prevent you from keeping or obtaining citizenship, a visa, or a green card. If you are considering bankruptcy as a non-citizen, please reach out to Veitengruber Law today. We can help you navigate bankruptcy law and get on a better financial path.