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Can you file bankruptcy if you’re not a U.S. citizen?

On Behalf of | Oct 14, 2024 | Business Bankruptcy |

If your business no longer earns income and piles up debts instead, you can take advantage of debt-restructuring options like bankruptcy. Filing for Chapter 11 or Chapter 7 bankruptcy can help you restructure your business or give you the fresh start you need.

Any business owner in the U.S. has this option. You can file for business bankruptcy even if you are not a U.S. citizen.

Requirements for filing bankruptcy

Federal laws govern the bankruptcy process. According to the U.S. Bankruptcy Code, noncitizens are eligible for bankruptcy relief and protection as long as they meet any of the following:

  • Live in the U.S.
  • Maintain or own a U.S. home
  • Maintain a commercial location or place of business in the U.S.
  • Own U.S. property

As long as you can support your claims of debt, prove your identity and prove that you meet any of the above criteria, you may declare bankruptcy.

Provide proof of identity and residence

Most U.S. citizens prove their identity and residence using their Social Security Number (SSN). However, this generally isn’t possible for noncitizens. If you are a permanent resident or undocumented individual, you may prove your identity using your:

The ITIN is the equivalent of an SSN for nonresidents and resident aliens in the U.S. If you are unable to provide any of the above documents, it is best to consult an experienced bankruptcy attorney to help you find a solution.

Understand the steps before filing bankruptcy

Filing for bankruptcy may offer debt relief but it is a difficult decision to make. Seeing legal advice can help you figure out if it is the best option for you – and if it is, how to navigate the process. It is important you understand how to do it, how it may affect your business and personal life, what form of bankruptcy to file for your situation and more.