How long reside in state to file?

[wildebeast]

I went for a consultation with a lawyer a month or so ago. He said that since we haven't lived in Colorado for 2 years yet, we have to file with the New Jersey exemptions/rules. Have any of you heard of this? We will be here 2 years on May 31. I doubt we can wait that long to file because I stopped paying creditors last November. I'm afraid we'll get sued before then.

I don't know if it will make a huge difference, but I want what is easiest for us.
Thanks

[StartingOver08]

You have to reside in the new state for 2 yrs to use that states exemptions. Check out the exemptions for both New Jersey and Colorado and see which are better for you.

May is not too long a time to wait - the creditors may or may not sue, but probably do not have time to get a judgement and garnishment before May anyway. Here are the links to check your exemptions:

Colorado: http://www.legalconsumer.com/bankrup...lName=Colorado

New Jersey: http://www.legalconsumer.com/bankrup...e=New%20Jersey

[JoeBankrupt33]

You have to live in a state for 91 days to file in that state. So, it sounds like you can file in CO. The next question is what exemptions to use. If you file now, you will have to use NJ rules, but NJ also lets you choose federal bankruptcy exemptions.

If you wait until your 2 years are up, then you will have to file with CO exemptions, which does not permit you to choose federal exemptions. So, I think it just depends on if one way benefits you more. If you are not protecting a house, the federal exemptions seem pretty good to me, and I would have preferred them over the CO exemptions. The worst part is that CO has no wildcard, so you have to run down your bank account to next to nothing just before you file.

As for getting sued, my wife quit paying her credit cards about 1.5 years ago, without any lawsuits. I quit paying on mine in November, and I wasn't even worried because of my wife's experience. I quit paying on my mortgages last January. The first mortgage foreclosed and took the house in October. The second mortgage was still coming after me, but no lawsuits.

[wildebeast]

We don't have any equity in our home, and I own 1 car that is worth maybe $800 (if I tried to resell it). I have no jewelry, but we do have a lot of household goods. I know you list them at garage sale pricing. I didn't know what questions to ask at the free consultation. I guess I can pay a retainer fee now and ask the lawyer advice.