I have received several emails commenting on my post about the legal issues in the hypothetical, but probable, Casey Anthony bankruptcy. My earlier post said that the well-known facts provide a good discussion opportunity about many technical bankruptcy law issues. The news reports that Ms Anthony may be compelled to testify under oath this coming October in the “Zanny” civil suit makes bankruptcy almost inevitable. Also, there have been more reports about book offers, and her attorneys do not want whatever opportunities materialize in the future to be subject to creditor claims or part of the bankruptcy estate. She will likely file bankruptcy before the civil case deposition.
Additional issues. One of the emails asked me what would happen to the bankruptcy if Ms. Anthony wants to relocate outside of either Orlando or outside of Florida. Ms. Anthony can move to another Florida city and file bankruptcy wherever she chooses to reside, whether or not the new location is near Orlando, Florida.
If she moves out of state the rules are different. Assume that Ms. Anthony is on her way to a new location far, far away. For example, assume next week she will be living in Alaska. For the next ninety days Ms. Anthony still must file bankruptcy in Florida. After residing in Alaska for 91 days she can file bankruptcy there. However, Alaska exemptions will not apply because she will not have lived in Alaska for two years. Florida exemptions will not apply to her case because she will no longer be a Florida resident; Florida exemptions require Florida residency. Her bankruptcy in the new location will be under the default Federal exemptions.
Exemptions don’t matter when the debtors have no assets. The papers report that Casey Anthony has about $500 to her name and no media deals in hand. She has options. If she wants the bankruptcy case to be administered far away she will quickly establish a residency in another state and wait 91 days to file in the new state. She has just enough time prior to the civil case deposition. Or, she can move from Orlando and file somewhere else in Florida whenever she wants so long as the case is filed before she has to appear under oath in civil litigation.
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