Relocating to a new state is already a major life event. When you add financial challenges or the possibility of filing for bankruptcy into the mix, the process can feel even more overwhelming. If you’re moving to or from San Mateo, CA and considering bankruptcy, it’s important to understand how relocation can affect your options and timeline.

Understanding Residency Requirements

Bankruptcy law is federal, but several key rules depend on where you live and how long you’ve lived there. Generally, you must reside in a state for at least 91 days before filing bankruptcy there. If you’ve recently moved, you may need to wait before filing in your new state.

There’s also the 730-day rule, which determines which state’s exemption laws will apply to your case. Exemptions help protect your property during bankruptcy, and California’s exemption system is particularly generous in certain areas—especially if you’re a homeowner in San Mateo or the greater Bay Area.

How Moving Impacts Your Bankruptcy Options

Your choice between Chapter 7 and Chapter 13 bankruptcy may shift depending on where you live. Because income levels vary significantly between states and regions, your eligibility under the “means test” may change after you move.

If you’re relocating to the San Francisco Peninsula—such as San Mateo, Burlingame, or Redwood City—you may find that the higher median income levels in California impact whether you qualify for Chapter 7. Understanding this before filing is crucial.

Timing Your Move and Your Filing

If you’re planning to relocate soon, timing becomes a strategic decision. In some cases, it may make sense to file before you move. In others, filing in California after establishing residency could offer stronger protections for your assets.

Protecting Your Property in a Move

Moving often involves big expenses—moving trucks, deposits, temporary housing. If you’re already facing financial strain, these costs can add pressure. Bankruptcy can potentially help you get relief from unsecured debts, giving you a more stable footing as you settle into your new home.

When to Talk to an Attorney

A move can complicate your bankruptcy filing, but with the right guidance, you can navigate both smoothly. An experienced bankruptcy attorney in San Mateo can help you understand the best timing, the most beneficial exemptions, and how California’s unique rules may work in your favor.

If you’re relocating and considering bankruptcy, planning ahead is the key to getting a fresh start—both financially and geographically.