Must You File Bankruptcy in the Bankruptcy Court Closest to Your Hom...

Many of my Chapter 7  bankruptcy clients whom I represent in Orlando bankruptcy court reside outside the Orlando area. Some live near Jacksonville; others live close to Tampa. What choice do debtors have regarding their bankruptcy court?

Florida is divided into a north, middle, and southern bankruptcy districts. There are several “divisions” within each district. The bankruptcy court in the Orlando division typically accepts bankrupt filing from debtors residing anywhere within the middle district. Therefore, someone living close to Tampa, and the Tampa Division court, may choose to file in the Orlando Division if they want me to handle their case.

No creditor or bankruptcy trustee has ever challenged to date a bankruptcy petition I filed for someone residing outside the Orlando Division. It could happen. The Casey Anthony bankruptcy now is facing a creditor’s challenge of her decision to file in the Tampa Division even though the debtor’s residence is in Orlando.

Creditor Zenaida Gonzalez filed a motion to transfer the Casey Anthony bankruptcy case to the Orlando bankruptcy court from Tampa. The creditor cites a Local Rule of procedure that states that debtors are supposed to file in the Division in which is located the debtor’s domicile, place of business or principal assets. The Motion accuses Casey Anthony of “forum shopping” by filing in Tampa when her residence and assets are located closer to Orlando. Also, it points out that it is more convenient for Ms. Gonzalez and other interested parties to move the proceeding to Orlando.

The Motion has not been set for hearing. It will be interesting to see how the court decides this issue.

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