Will Filing for Bankruptcy Affect My Immigration Status?

Filing for bankruptcy in New York is a legal process that allows individuals and businesses in financial distress to either eliminate or repay their debts under the protection of the bankruptcy court. At Ursulova Law Offices, our bankruptcy lawyer in Brooklyn, NY often encounters clients who are concerned about how filing for bankruptcy might affect their immigration status. It is important to understand that, generally, filing for bankruptcy does not directly impact an individual’s immigration status or their ability to apply for citizenship in the U.S.

Is Bankruptcy Filing a “Bad Moral Character” in U.S. Immigration?

The relationship between New York bankruptcy filings and immigration status is often shrouded in misconceptions, particularly around the issue of “bad moral character.” A common fear is that declaring bankruptcy might be perceived as a negative reflection of one’s moral character by U.S. immigration authorities. However, this concern, while understandable, is largely unfounded.

Both the USCIS and the Department of Homeland Security (DHS) do not categorize the act of filing for bankruptcy as an inherently negative reflection of an individual’s moral character. This perspective is rooted in the understanding that bankruptcy is a legal tool designed to provide individuals with a means to manage overwhelming debt and start anew financially.

Bankruptcy Requirements and U.S. Immigration

To file for bankruptcy in New York, an individual does not need to be a U.S. citizen. However, they must have a valid social security number or individual tax identification number. Additionally, residency requirements stipulate that the individual must have lived in the state where they are filing for a certain period, typically 180 days before the filing. These requirements are in line with U.S. immigration laws, ensuring that bankruptcy is accessible to those who are legally residing in the country.

• Filing For Bankruptcy While Obtaining a Green Card: Filing for bankruptcy does not directly affect an individual’s green card eligibility. The process of obtaining lawful permanent residency primarily focuses on factors like family relationships, employment prospects, and the absence of disqualifying factors such as certain criminal activities or security risks.  
• Filing For Bankruptcy While Obtaining Citizenship: Similar to obtaining a Green Card, filing for bankruptcy does not directly affect your immigration status or your eligibility for U.S. citizenship. The USCIS does not consider filing for bankruptcy as a negative factor in determining an individual’s moral character, which is a requirement for naturalization.   

While filing for bankruptcy in New York does not directly affect one’s immigration status, other financial behaviors can have indirect implications.

Financial Activities That Will Affect Immigration Status

While bankruptcy does not directly affect your immigration status, certain financial behaviors can impact one’s immigration status.

• Tax Evasion: This obligation is seen as a fundamental responsibility, and shirking it can reflect poorly on an individual’s character. In immigration terms, failing to meet such an obligation could be construed as evidence of bad moral character, potentially impacting immigration cases or citizenship applications.
• Bankruptcy Crimes: It is also important to note that certain bankruptcy-related crimes, such as bankruptcy fraud, or identity theft, can have direct implications on one’s immigration status. These criminal activities are taken seriously by both the bankruptcy courts and immigration authorities.

While bankruptcy in New York, including Brooklyn bankruptcy, can provide financial relief, it is essential to approach the process with integrity and transparency, especially for individuals concerned about their immigration status. At Ursulova Law Offices, our bankruptcy lawyers in Brooklyn, NY are your trusted source for bankruptcy legal assistance who can provide invaluable assistance when filing for bankruptcy in New York. Contact us today for a consultation.