How Can Undocumented Immigrants File Bankruptcy?

July 29, 2011 by  Filed under: Bankruptcy 

Debtors do not need to be citizens or even legal residents to file bankruptcy. However, there are a few things that debtors who are undocumented immigrants should consider when filing bankruptcy. Let’s take a look at a few:

  1. Failing to file a tax return can make an undocumented immigrant vulnerable to deportation. Many debtors filing bankruptcy do so with unfiled tax returns because they just have not been able to afford their taxes. Usually this can be fixed by the debtor simply going back and filing the returns, however they will need to make sure all of their tax returns are filed to avoid possible deportation issues in the future.
  2. If an undocumented immigrant is found to be guilty of evading taxes during their bankruptcy or admits to evading taxes, they could face deportation by immigration officials. To avoid this, debtors who are undocumented should work with their Dallas bankruptcy attorney to handle any unpaid tax issues. They should be transparent with their Dallas bankruptcy attorney about any unpaid taxes, unfiled tax returns or any inaccurate tax returns before they filing. Even if the debtor made mistakes, it’s best that the bankruptcy attorney be made aware of those mistakes so that he/she can work with the debtor to correct the issue before it becomes an immigration issue.
  3. Using fake documents, a fake name, or another person’s identity can make the undocumented immigrant vulnerable to deportation. If the debtor files bankruptcy with fake documents they could face several legal issues, including a fraud charge as well as a future deportation if they are an undocumented immigrant. They need to make sure that they are filing their case under their real name so that they can minimize possible immigration issues.
  4. If an undocumented immigrant filing bankruptcy is wanted on criminal charges, they may run into immigration issues. This is why it’s best that they make their bankruptcy attorney aware of any outstanding warrants or criminal convictions so that attorney can make the proper referrals to an immigration attorney if necessary. A debtor’s Dallas bankruptcy attorney and immigration attorney may be able to work together to minimize the debtors vulnerability to deportation.
  5. Finally, undocumented immigrants filing for bankruptcy must make sure that they avoid fraudulent transfers of assets. Many times fraudulent transfers occur before bankruptcy because of ignorance on the part of the debtor. The debtor simply does not know that they cannot transfer their house, cash and other valuables to friends and family before filing bankruptcy. If they have fraudulently transferred assets before filing bankruptcy, they need to make their Dallas bankruptcy attorney aware so that the transfers can be corrected. If an undocumented immigrant fraudulently transfers $10,000 or more in assets before filing bankruptcy, they could unfortunately face serious immigration issues.

Reed Allmand is constantly looking for ways to improve the financial situation of his Dallas Bankruptcy clients. You can visit to view more articles like this and find great tips on managing your financial situation.

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