If you’re an immigrant struggling with overwhelming debt in the United States, you might feel trapped, uncertain if the legal avenues for financial relief apply to you. The good news is: U.S. bankruptcy laws are designed to be inclusive, extending eligibility to individuals based on their connection to the U.S., not solely their citizenship or immigration status.

The simple answer is yes, immigrants can file for bankruptcy in the U.S.

The Debtor Under U.S. Bankruptcy Law

The U.S. Bankruptcy Code (Section 109(a)) defines who is eligible to file for bankruptcy, stating that “only a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor.”

Noticeably absent from this definition is any requirement for U.S. citizenship or specific immigration status. This means:

• Green Card Holders (Lawful Permanent Residents): Absolutely. You generally meet the residency or domicile requirement.
• Non-Immigrant Visa Holders (H-1B, L-1, F-1, E-2, etc.): Yes, if you reside here, have a place of business, or own property. Many long-term visa holders easily meet these criteria.
• Individuals with an Individual Taxpayer Identification Number (ITIN): Yes, even without a Social Security Number, if you meet the residency or property requirements.
• Even Undocumented Individuals: While practically more challenging due to identity verification and public record issues, there is no federal law preventing an undocumented person from filing for bankruptcy if they meet the residency/domicile/property criteria. However, consulting with an immigration attorney before filing is strongly advised due to potential public record implications.

Residency, Domicile, Place of Business, or Property

To file bankruptcy, you must establish a connection to the U.S. that satisfies one of these conditions:

• Resides: You physically live in the U.S. (or in the specific judicial district where you plan to file) for the greater part of the 180 days preceding your bankruptcy filing.
• Domicile: This refers to your true, fixed, and permanent home, where you intend to return whenever absent. It implies a deeper connection than mere residence.
• Place of Business: You conduct business operations within the U.S.
• Property in the U.S.: You own assets, even a bank account, within the United States. While some courts may require a more substantial connection, even minor U.S. property can sometimes establish eligibility.

The Role of Your SSN or ITIN

While the Bankruptcy Code itself doesn’t explicitly require a Social Security Number (SSN), the official bankruptcy forms do ask for it.

• If you have an SSN: You should provide it.
• If you do not have an SSN but pay U.S. taxes: You likely have an Individual Taxpayer Identification Number (ITIN). An ITIN is issued by the IRS for tax processing purposes to individuals not eligible for an SSN, regardless of immigration status. An ITIN is generally sufficient for filing bankruptcy. You will need to present proof of your ITIN (e.g., ITIN card, tax return) along with a valid photo ID to the bankruptcy trustee at your Meeting of Creditors.

Important Note: If you used a false SSN to obtain credit or loans, filing bankruptcy could expose this issue, leading to potential criminal charges and severe immigration consequences. Always consult an attorney in such situations.

The General Bankruptcy Process for Non-Citizens

The bankruptcy process for a non-citizen is largely the same as for a U.S. citizen. It typically involves:

1. Credit Counseling: Completing a pre-bankruptcy credit counseling course from an approved agency.
2. Filing the Petition: Submitting a formal petition and other required forms to the bankruptcy court.
3. Meeting of Creditors (341 Meeting): Attending a meeting with a bankruptcy trustee and creditors (though creditors rarely attend). Here, you’ll answer questions under oath about your finances and identity.
4. Debtor Education Course: Completing a post-filing debtor education course.
5. Discharge: If all requirements are met, the court will issue a discharge order, legally releasing you from most debts.

Crucial Expert Legal Counsel

While bankruptcy is accessible to immigrants, it’s a complex legal process with potential implications beyond just debt relief.

At LforLaw, we understand the nuances of bankruptcy law and its intersection with immigration status. Our attorneys can:

• Assess Your Eligibility: Determine if you meet the criteria to file for Chapter 7 or Chapter 13 bankruptcy.
• Navigate Documentation: Guide you on providing necessary identification, financial records, and tax information, whether you have an SSN or ITIN.
• Address Specific Concerns: Discuss how bankruptcy might indirectly affect future immigration applications (e.g., naturalization, public charge rule) and help you strategize to minimize any negative impact.
• Ensure Compliance: Help you avoid common pitfalls, such as bankruptcy fraud, which can have severe immigration consequences.

Facing overwhelming debt is stressful, but a fresh start is possible. Don’t let misconceptions about your immigration status prevent you from exploring viable debt relief options. Contact LforLaw today for a confidential consultation and take the first step toward financial stability.