Best state to file bankrupcy

Bankruptcy is based on federal law and is filed in federal court therefore there is no particular advantage to filing in Texas rather than New York. One area that might depend on state law is the homestead exemption for your home. If you have claimed one, the best state to live in is Florida where the entire value of your house is protected by the homestead. That keeps it from creditors even in bankruptcy. Your question centers on relocation: if your house is located in CA it may make no difference where you file as CA law would apply to its disposition.

The current bankruptcy law was passed for the purpose of stopping people from forum shopping (ie picking a state to move to) for bankruptcy. The reason is because some states allow larger homestead exemptions (like Florida and Texas). I can't imagine that makes a huge difference for you if you don't have a lot of equity in your house (which I'm guessing you don't). But what happens is, if you move somewhere and file, and you lived elsewhere longer during the past three years that place you moved from will be the state your exemptions are based on. if you haven't lived anywhere in particular long enough, then the Federal exemptions apply. If you are planning to file, waiting to move won't necessarily benefit you, especially since you've been at the same job for over 24 years. California exemptions are going to apply unless you wait several years to file. You SHOULD be able to keep your car if you can afford the lease, but it depends on your circumstances. You should consult with a bankruptcy attorney.

Just to add, yes you can and HAVE to include your car in the bankruptcy. It will be listed as a lease. If you don't pay, they will come and get your car as you will have broken the terms of the lease.