If you reside in one state, leave the country for 6 months and when you come back you are in a different state. In what state do you file for Bankruptcy (Chapter 7 or 13) according to the new laws.?
Actually the person above is incorrect. Residency requirements were affected under the new laws. Bankruptcy laws exist at both the state and federal level, and some states' laws are more favorable than both other states' and federal law. Under the old law it was very simple to find the state that offered the most favorable bankruptcy laws and file in that state. The new law is designed to prevent debtors from "jurisdiction shopping", such as moving to a new state and immediately filing bankruptcy.
Under the new laws, if you're living in a state for less than two years that has more-favorable provisions than the one you previously lived in, you can't use the more-favorable provisions. So establishing residency of at least a 2 year period is key.
You can go to the following link to better understand some of the changes under the new bankruptcy law: http://www.bankrate.com/brm/news/credit-management/20050928a1.asp
