What do "Residence" and "Domicile" Mean in Bankruptcy?

 Posted on February 04, 2026 in Bankruptcy

The words "residence" and "domicile" might sound like they mean the same thing, but in bankruptcy law, they have different meanings. These two terms determine whether you can file for bankruptcy, where you must file your case, and which property you get to keep. 

According to the American Bankruptcy Institute, there were over 500,000 individual bankruptcy filings in the previous two years. Every single one of those cases required the filer to prove domicile or residence in the correct location.

Understanding the difference between residence and domicile is critical because using the wrong exemptions or filing in the wrong location can delay your case or even cause it to be dismissed. If you are filing for bankruptcy in 2026, our New Braunfels bankruptcy attorney can help you make sure you have your residence and domicile noted correctly. 

What Exactly Is a Domicile in a Bankruptcy Case?

The Bankruptcy Code does not actually define the term domicile, but courts have interpreted it consistently over many years. In general, your domicile is the place that you consider your present permanent home.

Most of the time, your domicile is the area where you live with the intention of continuing to live there indefinitely. For example, you and your spouse purchased a home in San Antonio five years ago. You live in that home, your children attend school nearby, you work in the area, and you use that address for all residential purposes. 

However, sometimes your domicile is not where you are currently living. Imagine you have lived in New Braunfels for fifteen years and consider it your home. Your elderly parent in another state becomes seriously ill, so you move temporarily to care for them. New Braunfels remains your domicile even though you are not physically living there right now.

You can have only one domicile at any given time. It can change, but only if you intend to change it and take actions showing your intention to make a new place your permanent home. 

What Is Residence in Bankruptcy?

The Bankruptcy Code also does not define residence, but the concept is simpler than domicile. Your residence is simply the place where you are currently residing. As explained above, you do not always reside in your domicile.

You can change residences by simply moving from one place to another. If you spend part of the year in one place and another part of the year somewhere else, your residence changes as you move between locations. Your domicile, however, would be in whichever of these places you consider your permanent home.

Here is an example. You are a high school teacher in San Antonio whose extended family lives in Colorado. Every summer for the past ten years, you have taught summer school while living in your brother's spare bedroom in Colorado. You have two residences: your home in San Antonio during the school year and your brother's home in Colorado during the summer. However, your domicile is San Antonio because that is where you consider your permanent home.

How Do These Definitions Apply to Your Bankruptcy Case?

You can file for bankruptcy in the United States if you reside or have your domicile in the United States. This is an either-or situation, so meeting one requirement is sufficient. You can file in the federal judicial district either where you reside or where you have your domicile. Again, you only need to meet one of these requirements, though most people reside in their domicile anyway.

If you have residences in different federal districts, you can file for bankruptcy wherever you have a residence. You can also file wherever you have a principal place of business or your principal assets. This flexibility allows some choice in where to file, but most people simply file in the district where they live.

The property exemptions question is more restrictive. Using the exemptions available to residents of a particular state requires not just residency but being domiciled in that state for 730 days before filing. This two-year domicile requirement prevents people from moving to states with generous exemptions right before filing bankruptcy.

Why Do Residence and Domicile Matter in Bankruptcy?

Your domicile and sometimes your residence control three major aspects of your bankruptcy case. These determinations affect the entire process from start to finish.

Who Can File for Bankruptcy

Section 109 of the United States Bankruptcy Code establishes who is eligible to file. You can file a bankruptcy case in a United States bankruptcy court if you reside in or have a domicile, a place of business, or property in the United States. This means that even if you are not a citizen, you may still be able to file for bankruptcy as long as you meet one of these requirements.

Where You Must File Your Bankruptcy Case

The bankruptcy case must be filed in the bankruptcy court of the federal judicial district in which you have your domicile, residence, principal place of business, or principal assets. This rule comes from 28 United States Code Section 1408.

Which Property Exemptions You Can Use

Property exemptions are laws that protect certain assets from being taken by creditors in bankruptcy. Texas offers some of the most generous bankruptcy exemptions in the nation, including unlimited homestead protection and significant vehicle exemptions. However, you cannot simply move to Texas right before filing bankruptcy and immediately claim these generous exemptions.

According to Section 522 of the Bankruptcy Code, the person filing bankruptcy uses the set of exemptions available at the place in which the debtor's domicile has been located for the 730 days immediately preceding the date of the bankruptcy filing. This equals exactly two years.

If you have not been domiciled in one place for the last two years, you must use the exemptions available to the place where you were domiciled during the 180 days immediately before the two-year mark.

This complex rule exists to prevent "exemption shopping," where people move to states with better exemptions right before filing bankruptcy. While Texas has excellent exemptions, you must establish your domicile here well in advance of filing to take advantage of them.

Call a San Antonio, TX Consumer Bankruptcy Lawyer Today

The rules around residence and domicile in bankruptcy are complicated. Mistakes can cost you valuable exemptions or cause delays in your case. 

If you have moved recently or have connections to multiple states, figuring out your correct domicile and which exemptions you can use takes some planning. Our experienced New Braunfels consumer bankruptcy attorney can make sure you file your case in the correct location. Contact the Law Offices of Chance M. McGhee at 210-342-3400 for a free consultation to discuss your bankruptcy options and protect your rights.