Today’s Question: “I Lived in NJ, Then PA, Then FL, and Now TN… Where Do I File Bankruptcy and What Exemptions Apply?”

If you’ve moved around in the last few years and are now considering bankruptcy, you may be wondering:

“Where do I file bankruptcy?”
“Which state’s exemptions do I use?”
“Do I file where I used to live or where I live now?”

And if you’ve Googled it, you’ve probably seen confusing answers like:

• “You file where you’ve lived the last 6 months”
• “You file where your assets are”
• “You have to use the exemptions from the state you lived in two years ago”
• “You can pick whichever state helps you most”

So what’s the real answer?

Let’s break it down clearly — using a common example:

You lived in New Jersey for 10 years, then Pennsylvania for 1 year, then Florida for 1 year, and now Tennessee for 6 months.

Bankruptcy Has Two Separate Rules:

1. Where You File

2. Which Exemptions You Use

This is where people get confused.

You can file in one state, but use exemptions from a different state.

It sounds strange — but it’s true.

Rule #1: Where Do You File Bankruptcy?

Generally, you file bankruptcy in the federal district where you have lived for the greater part of the last 180 days (about 6 months).

So if you have lived in Tennessee for the last 6 months, most likely:

You would file bankruptcy in Tennessee.

Because Tennessee is now your primary residence and you’ve been there long enough for venue purposes.

However, if you recently moved and you have not been in Tennessee a full 180 days, you may still have to file in your prior state.

Rule #2: What State’s Exemptions Apply?

This is the part that surprises people.

Bankruptcy exemption rules are based on where you lived for the two years before filing.

The bankruptcy code uses a “730-day rule.”

That means you look back 730 days (2 years) from the date you file bankruptcy and determine which state you lived in during that period.

If you have lived in one state for the full two years, you usually use that state’s exemptions.

But if you moved during those two years (like in this example), the rules go back even further.

The “Look Back” Rule (The Real Answer)

If you have not lived in one state for the full two years before filing, then bankruptcy law says you must use the exemptions of the state where you lived for the majority of the 180 days before that 2-year period.

Yes… it’s confusing.

But this is exactly why people who have moved often get tripped up.

So In This Example… Which State’s Exemptions Apply?

Let’s map it out:

• New Jersey: 10 years
• Pennsylvania: 1 year
• Florida: 1 year
• Tennessee: 6 months

If you’ve only been in Tennessee for 6 months, you have NOT been there for 2 full years.

So Tennessee exemptions likely would not apply yet.

We then look back at the last 2 years.

In the last 2 years, you lived in:

• Florida for about 1 year
• Tennessee for about 6 months
• and part of that time may overlap into Pennsylvania depending on the exact dates

Because you moved multiple times, your exemption state may end up being:

Florida or Pennsylvania (depending on the exact dates)

New Jersey likely would not apply unless your move history pushes the look-back period far enough back.

Here’s the Key Point: You File Where You Live Now… But You Might Use Another State’s Exemptions

This is the part most people get wrong.

Even if you file bankruptcy in Tennessee, you might be required to use:

• Florida exemptions
• Pennsylvania exemptions
• or even federal exemptions in certain cases

It depends on the residency timeline.

Why Does Bankruptcy Law Do This?

The law was designed to prevent people from moving to a state with better exemptions right before filing bankruptcy.

For example, some states have very generous homestead exemptions.

Without residency rules, someone could move for a few months, file bankruptcy, and protect a large amount of property.

So the residency look-back period exists to prevent “exemption shopping.”

What If You Don’t Qualify for Any State’s Exemptions?

Believe it or not, sometimes people fall into a situation where:

• they cannot use the exemptions of their current state yet, AND
• the prior state exemptions may not be available because they no longer live there

In those cases, the bankruptcy code may allow:

Federal bankruptcy exemptions

This is another reason it’s critical to speak with an attorney when you’ve moved around.

What Exemptions Matter Most?

The exemptions that most often affect people are:

• Homestead exemption (home equity)
• Motor vehicle exemption (car equity)
• Personal property exemption
• Retirement accounts
• Household goods
• Wildcard exemptions (extra protection that can be applied anywhere)

Different states have drastically different exemption amounts.

So the state exemption rules can mean the difference between:

• keeping your property
• or having assets at risk in Chapter 7

So What Should You Do If You’ve Moved a Lot?

If your timeline looks like NJ → PA → FL → TN, the best thing you can do is:

Get a bankruptcy consultation before filing

and bring:

• your exact move dates
• your lease or home purchase dates
• your car titles and loan information
• your estimated property values
• any tax debt, child support, or secured loans

A qualified bankruptcy attorney can calculate:

• where you are allowed to file
• which exemptions you must use
• whether Chapter 7 is safe
• whether Chapter 13 may be a better option

The Bottom Line

If you lived in NJ for 10 years, then PA for 1 year, then FL for 1 year, and now TN for 6 months:

✅ You will most likely file bankruptcy in Tennessee
⚠️ You may NOT be allowed to use Tennessee exemptions yet
⚠️ Your exemptions may come from Florida or Pennsylvania depending on your timeline
✅ In some situations, federal exemptions may apply

Final Thought: Don’t Guess — Timing Matters Too Much

Residency and exemption rules are extremely technical.

And filing bankruptcy under the wrong exemptions can cause major problems, including:

• losing property you could have protected
• delays in your case
• trustee objections
• unnecessary stress

If you’ve moved recently, the smartest move is to get legal advice before filing so you file correctly the first time.

Need Help? We Can Review Your Residency Timeline.

If you’ve lived in multiple states and are unsure where to file or what exemptions apply, we can help you review your residency history and determine the best bankruptcy strategy.

Bankruptcy should bring relief — not more confusion.