Considerations for Moving During Bankruptcy

At Kuhlman Law Office, serving Mill Creek and the greater Snohomish County area, we often work with individuals and families navigating complex life changes—including relocation—while going through bankruptcy. One common concern? How moving across state lines could affect your bankruptcy case.

Here’s what you need to understand before making a move during this critical time.

Bankruptcy Exemptions Depend on Your Previous Residency

Exemptions determine what property you can keep when filing for bankruptcy—and they vary from state to state. Federal law requires that your exemptions be based on where you lived during the two years before filing. If you’ve changed residences during that time, the state you called home for the majority of the 180 days before that two-year window will likely control your exemptions.

If that state doesn’t allow out-of-state residents to use its exemptions, you may default to the federal exemption system, which still offers protection—but different rules. That’s why it’s crucial to work with a knowledgeable bankruptcy attorney who can assess your unique residency timeline.

 

Your Case Stays Put—Even If You Move

Bankruptcy cases are filed in federal court, and yours will remain in the district where you lived or held most of your assets in the 180 days before filing.

If you move out of Washington, don’t expect your case to follow automatically. To request a transfer, you’ll need to file a motion, notify your creditors, and possibly appear in court. Even then, a judge will only approve the move if it’s deemed fair and convenient for everyone involved.

 

Don’t Forget to Update Your Address

When you relocate, updating your address with the bankruptcy court and your case trustee is more than just good housekeeping—it’s essential. Missing a notice about a hearing or deadline could delay your case or even result in a denied discharge.

We always remind our clients in Mill Creek and nearby communities to notify us and the court right away if they plan to move.

Moving Doesn’t Pause Your Bankruptcy Responsibilities

Whether you're filing under Chapter 7 or Chapter 13, your responsibilities remain the same after moving. You must:

• Attend scheduled hearings

• Complete credit counseling and debtor education courses

• Continue with your Chapter 13 repayment plan (if applicable)

Relocating does not relieve you of any of these duties, and failure to comply can have serious consequences.

Additional Considerations for Chapter 13 Cases

For those in Chapter 13, which involves a 3-5 year repayment plan, relocating can introduce more complexity. You’ll still make payments to your current trustee unless a court allows a transfer. If your financial circumstances change due to the move—like a new job or higher rent—you may need to modify your repayment plan with court approval.

 

Before You Move, Let’s Talk

Planning a move while your bankruptcy case is active requires careful coordination. At Kuhlman Law Office, we’re here to guide you every step of the way. Whether you’re staying in Snohomish County or relocating out of state, we’ll help ensure your bankruptcy case stays on track.

Contact us today for personalized legal guidance before you pack the moving truck. A little planning now can prevent costly complications later.