Having to deal with money problems can be stressful on its own. If you are not a U.S. citizen, you might think that the only way to deal with massive debt is to accept it and move on with your life. But anyone who lives in the United States, whether they are a citizen or not, can file for bankruptcy.
The credit bureaus and procedures in place in the U.S. affect citizens and those who are not citizens. If you are not a U.S. citizen and file for bankruptcy, you might be kicked out of the country or have your immigration application turned down by the U.S. government. On the other hand, the opposite is true. Even though you have filed for bankruptcy, your visa or green card application will not be turned down. Also, it won’t change your legal status as a resident.
Does Bankruptcy affect citizenship?
When deciding where a person should live based on their application for permanent residence, neither the USCIS nor the DHS looks at their history of bankruptcy. If you are immigrant thinking about going bankrupt, you should read this essay. It will go over some of the most important things to think about.
Most of the time, filing for bankruptcy won’t change whether or not you can stay in the United States. This won’t affect your application for citizenship in the United States, nor will it affect your application for a visa or a green card. No debtor’s immigration status is mentioned in any vital part of a bankruptcy document.
Moving in the last few months can make it harder to file for bankruptcy. In some cases, you may be asked to show proof that you live in the state where you’re applying. Most of the time, you must have lived in the state where you now live for at least 91 days out of the last 180. You do not have to send official documents to the USCIS to meet this criterion. You might have to wait until the 91-day mark to send your work.
A person must show that they have “good moral character” to become a citizen or get legal permanent residency in the United States. Filing for bankruptcy doesn’t hurt a person’s morals, and the fact that they have done so doesn’t hurt them either. If it’s relevant to the case, USCIS officers care more about whether or not you pay taxes than how much money you have now.
Under federal immigration law, people who have filed for bankruptcy are not seen as public debtors. U.S. Citizenship and Immigration Services (USCIS) says that they can turn down visa requests from people who might need help from the government. A person who gets food stamps is an example of someone who gets help from the government.
When you file for bankruptcy, you must sign the paperwork, even if you could be charged with lying if you don’t. You say that the information in your bankruptcy papers is correct as much as possible to the best of your knowledge. Federal law states that lying under oath is a felony that can lead to jail time, fines, or both. It is against the law and a sign of bad moral character to leave assets off of your bankruptcy petition and schedules. Your citizenship now and in the future may be in danger.
If you file for bankruptcy, you must prove that you did so in good faith before you can get citizenship, a visa, or a green card. When someone deliberately takes on more debt before filing for bankruptcy or uses bankruptcy as an excuse to avoid paying alimony or child support, they are committing bankruptcy fraud. The United States Citizenship and Immigration Services sees this as a bad moral character.
Is it a bad idea to file for bankruptcy?
You can file for bankruptcy because the law lets you. Laws have been implemented to help people who can’t or don’t want to pay back their debts. Even if banks, credit card companies, and other financial institutions try to tell you otherwise, being in debt is not seen as a moral flaw in the United States.
If the United States Citizenship and Immigration Services (USCIS) looks at an applicant’s moral character, the citizenship application will either be approved or denied. Even though bankruptcy has a bad reputation in society, the United States Citizenship and Immigration Services does not think that being in debt or filing for bankruptcy are bad things about a person.
But remember that bankruptcy isn’t the best choice for everyone, even though it has benefits. Consider your current financial situation and long-term goals when deciding whether or not to file for Chapter 7 bankruptcy.