Kim, a green card holder who owned a restaurant in the U.S., was faced with a large deficit when her business was shut down in the aftermath of the COVID-19 pandemic. This deficit led to debt, and while we tried to mitigate the losses, the snowballing deficit and debt soon became unmanageable. A few years later, I bought a restaurant that I had sponsored for immigration with the money I made from selling all of my properties in Korea, and I had no way to finance it anymore. I have learned about the US bankruptcy system and would like to apply for it, but I am afraid that if I do, it will be detrimental to my chances of getting a green card extension or citizenship later, or that I will not be able to get it.
Many permanent residents and those in nonimmigrant visa status are hesitant to file for bankruptcy because they are concerned that it will adversely affect their ability to obtain a green card, green card extension, or citizenship at a later date, or that they will not be able to do so. The bottom line is that filing for bankruptcy does not affect your current status. This does not affect future green card applications, citizenship applications, or subsequent entry into or exit from the United States.
Good moral character is required for citizenship, but filing for bankruptcy does not fall under this category. However, if you fail to pay taxes, conceal property in a bankruptcy filing, or are convicted of debt-related fraud, you may be barred from obtaining a green card or citizenship. So don’t be afraid to ask about bankruptcy on your citizenship application, and you won’t be penalized for telling the truth.
As with green card holders, non-immigrant visa statuses have the same protections. Specifically, you must have lived in the jurisdiction of the court where you are filing for at least the last 180 days, and most of your property must be located in the same area during that time.
However, unlike permanent residents, people in non-immigrant visa status need to be aware of the nature of their visa. For example, the E-2 visa is a micro-investment visa, which means that you must be investing and operating a business in the United States. If you file for Chapter 7 bankruptcy, all of your equity in the business will be used to pay off your debts, so you may not be able to run the business anymore. This will defeat the purpose of the visa and you will need to obtain another status or return to South Korea. If you are unsure of the nature of your visa, we highly recommend consulting with an immigration attorney.
As a foreigner, life in the United States is never easy. Over the course of your life, you may end up with a lot of debt for a variety of reasons. If you are hesitant to file bankruptcy because you are concerned about your status, we strongly recommend that you speak with an experienced bankruptcy and immigration attorney. If you have any questions about bankruptcy, please contact mail@songlawfirm.com으로.