At Scura, Wigfield, Heyer, Stevens & Cammarota, LLP, we understand the challenges immigrants face—especially those navigating both the U.S. immigration system and overwhelming debt. As a New Jersey bankruptcy attorney who has represented more small business debtors than any other lawyer in the state, I’ve seen how financial distress intersects with immigration concerns.
If you’re an immigrant considering bankruptcy or already in the process, the good news is this: bankruptcy does not automatically disqualify you from obtaining a green card or U.S. citizenship. But it can raise questions in certain immigration contexts. Here’s what you need to know.
When applying for a green card through family sponsorship, the U.S. Citizenship and Immigration Services (USCIS) evaluates whether you’re likely to become a “public charge”—someone dependent on government assistance.
Your sponsor must submit Form I-864, Affidavit of Support, demonstrating income of at least 125% of the Federal Poverty Guidelines. For 2025, that’s $26,437 for a two-person household.
If your sponsor meets this requirement, your past bankruptcy is unlikely to impact your case. USCIS focuses more on your current financial stability and your sponsor’s qualifications—not your credit history.
In most employment-based green card cases, it’s your employer, not you, who must demonstrate financial capacity—specifically, the ability to pay the wage listed on Form I-140. Your bankruptcy history is generally not reviewed.
Exceptions exist in self-petition cases like:
In these cases, USCIS examines your financial independence. If your proposed endeavor is tied to a bankrupt business, you’ll need to show other evidence of viability—like savings or job offers.
For EB-2 NIW, USCIS applies the Matter of Dhanasar three-pronged test. One prong assesses whether you are “well-positioned to advance the proposed endeavor.” A recent bankruptcy could call that into question. (See the 2025 USCIS Policy Update).
Investor Visas (EB-5): Bankruptcy can be disqualifying if it prevents you from investing the required capital.
Diversity Visa Lottery: Bankruptcy does not bar you, but at your consular interview, you’ll need to prove financial independence.
Humanitarian Relief (Asylum, VAWA, Special Immigrant Juvenile, Refugee Status): These categories are exempt from the public charge rule, so bankruptcy is irrelevant. (See Public Charge Resources).
Bankruptcy will not prevent you from becoming a U.S. citizen. However, certain financial behaviors may affect the USCIS’s determination of your Good Moral Character (GMC):
If you’re an immigrant dealing with serious debt, know that bankruptcy is not the end of your immigration journey. While it can raise flags in certain contexts, proper planning, experienced legal representation, and full disclosure can help you achieve both a financial fresh start and your immigration goals.
I’ve helped countless clients balance these two complex areas of law—and I’d be honored to help you, too.