When you file for bankruptcy state law determines what property is exempt, that is in a Chapter 7 what property you can keep. It is the state where you have had your domicile (your permanent home) for at least two years that counts. This could be a state that you do not have many connections with anymore, yet it still controls. To make it more complicated, most states prohibit you from using the exemptions in the Bankruptcy Code which are more generous than most states.

In most cases those restrictions only apply to residents of those states, but only an attorney can make a good prediction.  Also some states’ exemption laws do not apply outside that state. If you are not restricted than you can claim the more generous Bankruptcy Code exemptions.