Yes… Illegal Immigrants CAN Declare Personal Bankruptcy
Surprising Information Regarding Personal Bankruptcy
If you are not currently a legal resident of the United States, you may be wondering whether or not you can declare personal bankruptcy. The simple answer to this question is yes. Before you take steps toward bankruptcy though, make sure you understand what is expected of you and what complications may arise during the process.
Declare Personal Bankruptcy In Spite of Your Immigration Status
While it may be surprising, the bankruptcy code does not state that illegal immigrants can not declare personal bankruptcy. In fact, no reference to citizenship is made at all. The code simply states that an individual who wishes to declare personal bankruptcy must be a debtor with residence or property in the United States.
Laws Surrounding Personal Bankruptcy
However, declaring personal bankruptcy as an illegal immigrant isn’t as simple as it is for a US citizen. There are a couple of factors you must consider before declaring personal bankruptcy.
- Every debtor who decides to declare personal bankruptcy must provide proof of permanent residency or proof of ownership of property.
- Identification must be provided to the court during a bankruptcy case. For individuals who do not have a social security number, an individual tax identification number, or ITIN, is needed. An ITIN can be obtained by anyone who lives and works in the United States, regardless of citizenship status.
- It is used by individuals who can not legally obtain a social security number, but wish to pay taxes to avoid trouble with the IRS.
- If an illegal immigrant decides to declare personal bankruptcy and has been using a fake or stolen social security number, this number can not be included in the bankruptcy proceedings. Any debt incurred under this social security number may not be able to be discharged.
The Threat of Deportation For Those Who Declare Personal Bankruptcy
Bankruptcy itself is not a crime, and therefore can not result in the deportation of an illegal immigrant. However, illegal actions before and during your bankruptcy case may result in deportation. For this reason, many illegal aliens are hesitant to declare personal bankruptcy. With help from an immigration lawyer and a bankruptcy lawyer, though, you should be able to file bankruptcy and continue your residency in the US, whether you have applied for citizenship already or not.
Here are some steps you should take to make sure your bankruptcy is a success.
- Be honest. Even if you have been using a fake or stolen social security number, it is important to be honest with your attorney and the court. Even though you may not be able to eradicate the debt you accumulated under this number, using it on your bankruptcy petition constitutes fraud and can result in jail time and deportation.
- Act as if you are a responsible citizen of the United States, even if you aren’t. Crimes of “moral turpitude” will result in deportation. This means you should not write fraudulent checks, should pay your taxes, and avoid filing fraudulent bankruptcy petitions.
- Transferring assets or money to another individual prior to filing bankruptcy is frowned upon and could result in a dismissal of your bankruptcy case. Unless you are paying for regular living expenses, avoid this situation altogether.
If you are having financial difficulties and wish to declare personal bankruptcy, don’t let your citizenship status stop you. According to the bankruptcy code, anyone can declare personal bankruptcy as long as they own property or live in the United States.