Financial Struggles Don’t Have to Derail Your American Dream: Understanding Bankruptcy Rights for Queens Non-Citizens

For non-citizens living in Queens, financial hardship can feel like a double burden. Not only are you dealing with overwhelming debt, but you may also worry about how filing for bankruptcy could affect your immigration status, green card application, or path to citizenship. The good news is that filing a bankruptcy case won’t affect your immigration status, and understanding your rights can help you make informed decisions about your financial future.

Your Right to Bankruptcy Protection

Any individual residing in the United States, including non-citizens, has the right to file for bankruptcy if they meet the legal requirements. The U.S. Bankruptcy Code does not distinguish between citizens and non-citizens. All individuals facing unmanageable debts have access to the same protections and do not face exclusion based on their immigration status. To file for bankruptcy, you do need a Social Security number or ITIN (Individual Tax Identification Number), and you must demonstrate residency in the United States.

Bankruptcy is a civil matter, not a criminal one. The U.S. legal system allows individuals, regardless of immigration status, to file for bankruptcy to manage financial difficulty. There are no laws suggesting that filing for bankruptcy will automatically lead to deportation proceedings.

Impact on Immigration Applications

One of the most common concerns among non-citizens is whether bankruptcy will harm their chances of obtaining a visa, green card, or citizenship. Neither the U.S. Citizenship and Immigration Services (USCIS) nor the Department of Homeland Security (DHS) consider bankruptcy cases when reviewing residency applications. There is no law that says that filing for bankruptcy will prevent the United States Citizenship and Immigration Services from approving your visa, green card, or citizenship application.

However, there are some indirect considerations to keep in mind:

• Financial Stability Requirements: Some visa categories require proof of financial stability or the ability to support oneself. Bankruptcy could raise questions about an applicant’s financial responsibility and stability.
• Affidavit of Support: For family-based visas, the petitioner must file an Affidavit of Support (Form I-864) to demonstrate the ability to financially support the immigrant. If the petitioner has filed for bankruptcy, it might affect their perceived ability to fulfill this obligation.
• Public Charge Considerations: Federal immigration law doesn’t consider any person who files bankruptcy a public charge. This is meaningful since the USCIS has the authority to deny a visa to any applicant who may become a public charge.

Naturalization and Good Moral Character

For those seeking U.S. citizenship, the concept of “good moral character” is crucial. For any foreign national to become a citizen or lawful permanent resident of the United States, the individual must show “good moral character.” In no way is a bankruptcy filing an example or demonstration of bad moral character. The naturalization process considers many factors under the “good moral character” clause. If the bankruptcy was filed legally and there was no fraudulent activity involved, it should not impact the eligibility for naturalization.

What matters more to immigration officials is tax compliance. If applicable, any USCIS officer is more interested in whether you pay taxes than your financial status. Naturalization applicants must demonstrate that they have met their tax obligations. Bankruptcy that involves tax debts may prompt additional scrutiny of the applicant’s tax compliance.

When Bankruptcy Could Cause Problems

While legitimate bankruptcy filings don’t harm immigration status, there are scenarios where problems can arise:

• Bankruptcy Crimes: The major way a bankruptcy filing can negatively impact an Application for Naturalization is if it is discovered the Applicant committed a “bankruptcy crime” such as lying under oath, supplying false financial information or failing to disclose essential information or assets to the Bankruptcy Court.
• Fraudulent Activity: When you file bankruptcy, you have to sign every document under penalty of perjury. You attest to the truth and accuracy of every piece of information contained in your bankruptcy schedules and statements. Perjury is a federal crime subject to fines, imprisonment, or both. Intentionally leaving out assets on your bankruptcy petition and schedules is a violation of federal law and demonstrates bad moral character, which may compromise your present and future citizenship status.

Professional Guidance is Essential

Given the complexity of navigating both bankruptcy and immigration law simultaneously, working with experienced legal counsel is crucial. Navigating bankruptcy and its potential impacts on immigration status requires careful consideration and expert guidance. Our experienced bankruptcy attorneys can work with you and your immigration attorney to ensure that you receive the financial relief you need while protecting your immigration status.

When seeking legal help in Queens, it’s important to find a bankruptcy lawyer who understands the unique challenges faced by non-citizens. The law firm approaches each case with creative, clever, customized and compassionate debt solutions that may involve negotiation, litigation, bankruptcy, and/or other legal options. The Law Office of Ronald D. Weiss, P.C. has been serving the Queens community for decades, providing personalized attention to clients facing financial difficulties while understanding the immigration concerns that many of their clients face.

Moving Forward with Confidence

The bottom line is that if you’re an immigrant and seeking citizenship, even if you declare bankruptcy, you’ll still be able to become a citizen. All you need to do is make sure you’re honest about your financial situation, and that you remain crime free. For immigrants, like American citizens, a bankruptcy is nothing to be ashamed of or frightened of – it is your right. Bankruptcy provides a legitimate second chance for many people each year including American citizens and immigrants alike.

Remember that The Federal US Bankruptcy Code section 525 (a) prevents the government from discriminating against a person for filing a bankruptcy petition. This protection extends to all individuals, regardless of their citizenship status.

If you’re a Queens resident struggling with debt and concerned about your immigration status, don’t let fear prevent you from seeking the financial relief you deserve. With proper legal guidance and honest disclosure, bankruptcy can provide the fresh start you need while preserving your path to achieving your American dream.