You’re working hard, contributing to your community, and navigating the complexities of U.S. immigration. Then, unexpected financial hardship hits—job loss, medical bills, or business setbacks. As you consider options like bankruptcy, a common fear arises: Will this destroy my chances of getting a Green Card or lead to deportation?

Let’s put those fears to rest.

Bankruptcy is a Civil Matter, Not a Criminal One

The most crucial distinction to understand is that filing for bankruptcy in the U.S. is a civil legal process, not a criminal one. It’s a system designed to provide individuals and businesses with a fresh financial start under federal law. When you file for bankruptcy, you are exercising a legal right.

Therefore, honest and lawful bankruptcy filing, by itself, does not:

• Lead to automatic deportation. There are no provisions in U.S. immigration law that make bankruptcy a direct ground for removal.
• Result in an automatic denial of a visa or Green Card. Immigration decisions are based on specific eligibility criteria for each visa category, not solely on financial history.
• Prevent you from becoming a U.S. citizen. As long as the bankruptcy was filed legally and without fraud, it generally does not impact the “Good Moral Character” requirement for naturalization.

The U.S. Bankruptcy Code, specifically Section 525(a), even prohibits governmental units from discriminating against individuals solely because they have filed for bankruptcy.

The “Public Charge” Rule: Where Indirect Impacts Can Arise

While bankruptcy doesn’t directly disqualify you, there’s one area where financial history, including a bankruptcy, can be a factor for certain Green Card applicants: the “Public Charge” rule.

In 2025, the “public charge” rule for Green Card applicants (those adjusting status within the U.S. or applying for an immigrant visa abroad) focuses on whether an individual is likely to become primarily dependent on the government for subsistence. This is demonstrated by the receipt of specific cash assistance programs (like SSI, TANF, or General Assistance) or long-term institutionalized care at government expense.

How Bankruptcy Indirectly Relates to Public Charge:

• Financial Instability: While filing for bankruptcy doesn’t automatically brand you as a “public charge,” the underlying reasons for the bankruptcy (e.g., long-term unemployment, chronic inability to manage debt, lack of sufficient income) could be considered as part of the “totality of circumstances” assessment. Immigration officers evaluate various factors, including age, health, family status, assets, resources, education, and skills.
• Affidavit of Support (Form I-864): This is where bankruptcy can have the most direct, albeit indirect, impact. For most family-based Green Card applications, a U.S. citizen or Green Card holder sponsor must submit Form I-864, promising to financially support the immigrant.
  • Sponsor’s Bankruptcy: If the sponsor (the person who filed the I-864) has recently filed for bankruptcy, it might raise questions about their ability to meet the income threshold (125% of the Federal Poverty Guidelines) and uphold their financial obligation. While bankruptcy doesn’t void the Affidavit of Support, the immigration officer may scrutinize the sponsor’s current financial viability more closely.
  • Mitigation: If the primary sponsor’s financial situation is impacted by bankruptcy, a joint sponsor who meets the income requirements can be added to the application to overcome the public charge concern.

Important: The current public charge rule (reinstated by the Biden administration in 2022) is much narrower than the previous Trump-era rule. Most non-cash benefits (like SNAP, Medicaid, housing assistance) are not considered for public charge determinations.

When Bankruptcy Could Jeopardize Your Immigration Journey

While the act of filing honest bankruptcy is generally safe, specific misconduct during or before the bankruptcy process can have severe immigration consequences:

• Bankruptcy Fraud: Lying under oath, concealing assets, destroying financial records, or making false statements during your bankruptcy proceedings are federal crimes. Convictions for such offenses can lead to deportation, inadmissibility, or denial of immigration benefits (including naturalization) due to a lack of “Good Moral Character.”
• Misrepresentation: If you made false claims on immigration forms about your financial situation, or if you acquired debts through fraud that are then discharged in bankruptcy, this could raise concerns with immigration authorities.

Transparency and Professional Guidance are Key

The interplay between U.S. bankruptcy law and immigration law is nuanced. While financial hardship and honest bankruptcy should not be a barrier to your immigration goals, transparency and proper legal guidance are critical.

At LforLaw, our experienced attorneys understand both bankruptcy and immigration law. We can:

• Advise on Bankruptcy Eligibility: Help you determine if bankruptcy is the right financial solution for you.
• Assess Immigration Impact: Provide a clear understanding of how your specific immigration status and goals might interact with a bankruptcy filing, particularly concerning the “public charge” rule and Affidavit of Support.
• Ensure Honest Disclosure: Guide you through the bankruptcy process to ensure all disclosures are accurate and truthful, mitigating any risk of fraud.
• Strategize for Your Future: Help you develop a plan to address any potential concerns related to your financial history during your immigration process.

Don’t let fear or misinformation deter you from seeking financial relief when you need it. Contact LforLaw today for a confidential consultation, and let us help you navigate your financial and immigration future with confidence.