Bankruptcy and Immigration: Helpful things to know

How Bankruptcy Affects Immigration and Naturalization!
Bankruptcy can be a very confusing process, much like Immigration. The most common questions are:
- Do I Have To Be a U.S. Citizen To File Bankruptcy?
- Will Bankruptcy Affect My Immigration Status?
- Can an Undocumented Immigrant File for Bankruptcy?
- Can Bankruptcy Affect My Citizenship Application?
In general, a Bankruptcy Filing would not affect an Immigration Filing.
Bankruptcy is available for US Citizens and Non-US Citizens (such as Lawful Permanent Residents, DACA Holders, TPS Holders, and even Undocumented Immigrants). To file for Bankruptcy, you must be completely truthful. The information provided in the filing must be accurate, and your Social Security Number or ITIN must be accurate and yours.
So, anyone with a legal, government-issued social security card or ITIN can file for Bankruptcy.
When can Bankruptcy affect an Immigration filing, like Adjustment of Status or Naturalization?
The fact of filing a bankruptcy would not affect an immigration filing; however, fraud, perjury, and misrepresentation may disqualify an immigrant for an immigration benefit on misrepresentation grounds or bad moral character grounds. Here are some possible scenarios where Incorrect Bankruptcy Actions can damage an Immigration Filing:
- A Bankruptcy Filer immediately runs up a credit card with the complete intention of filing Chapter 7 Bankruptcy to discharge the New Debt. The Bankruptcy may be denied under this scenario and the Filer may be deemed to have Poor Moral Character, which can deny a naturalization filing or prevent a Green Card in an Adjustment of Status filing.
- A Bankruptcy Filer used a fake, stolen, or fraudulently acquired Social Security Card/Number. This act would be a form of perjury, that can deny a naturalization filing or prevent a Green Card in an Adjustment of Status filing. [Note: just because a Social Security Card is real doesn't mean it was acquired legally. Using false documents or a fraudulent Immigration Filing can be just as bad as the Social Security Card being fake or stolen.
- A Bankruptcy Filer is undocumented and using multiple Socials, ITINs, and other IRS numbers to falsify 1099 filings and misrepresent taxable income in a tax return filing. This perjury regarding income would invalidate any Bankruptcy Filing and can deny a naturalization filing or prevent a Green Card in an Adjustment of Status filing.
If I have a Concern, who should I speak with: an Immigration Attorney or Bankruptcy Attorney?
When in doubt, it would be best to speak with both types of attorneys. Alternatively, our office handles both Immigration and Bankruptcy. So, we would be a "one-stop-shop" and determining your rights and assessing your risks.
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