What Happens if an Immigrant Sponsor Declares Bankruptcy?

 Posted on August 22, 2025 in Immigration

Immigration has become a much more complicated process over the past few months, with laws changing quickly. Immigrants coming to the United States must, in some situations, have a lawful permanent resident sponsor or a U.S. citizen sign an Affidavit of Support (Form I-864). This document obligates the sponsor to provide financial support to the immigrant when necessary to prevent the immigrant from applying for public assistance.

Unfortunately, in some cases, a sponsor may fall on hard financial times, leading to the difficult decision to file for bankruptcy. Does filing for bankruptcy remove the obligation under federal law to provide for the immigrant financially? While there is additional information below, this is a complex issue that can significantly benefit from the experience and knowledge of an Itasca, IL immigration lawyer.

What is the Role of a Sponsor in Immigration Cases?

 A sponsor must be able to prove that he or she has sufficient income (usually 125 percent of the Federal Poverty Guidelines) to support the sponsored immigrant. The Affidavit of Support is a legally enforceable contract. This means sponsors can be held liable if the immigrant relies on public assistance or the sponsor fails to meet his or her financial obligations.

If the sponsored immigrant receives public benefits, the sponsor may be obligated to repay those benefits. This obligation usually lasts until the immigrant departs the U.S. permanently, works for 40 quarters or 10 years, or becomes a U.S. citizen.  A joint sponsor may be required if the primary sponsor’s income is insufficient.

How Does a Sponsor’s Bankruptcy Filing Affect the Sponsored Immigrant?

Bankruptcy can be a financial lifeline, eliminating many unsecured debts such as medical bills and credit card bills. However, there are several financial obligations that bankruptcy cannot cancel, and the Affidavit of Support is one of those. In fact, courts have ruled in the past that sponsored immigrants have the right to sue their sponsor for support, even after the sponsor completes the bankruptcy process.

A sponsored immigrant whose sponsor files for bankruptcy can experience serious financial instability. Losing a sponsor’s financial backing could impact the sponsored immigrant in a variety of ways. If the sponsor’s financial support is withdrawn before the issuance of a green card, the immigrant’s visa application may be denied. Without a valid affidavit of support, the government may deem the immigrant a "public charge." This is someone who is likely to depend on government assistance.

This designation will negatively impact the individual’s immigration status. The immigrant may need to find a new qualifying sponsor who will file a new Affidavit of Support to continue the immigration process. If the bankruptcy is filed after the immigrant has received his or her green card, there should be a limited impact on immigration status so long as no fraud was involved.

However, even after issuance of a green card, the Affidavit of Support remains a legally binding contract. Should the sponsored immigrant receive public benefits, the government can demand reimbursement from the sponsor. Losing a sponsor can be a very stressful experience. An immigrant whose sponsor is filing for bankruptcy should speak to a knowledgeable immigration lawyer as soon as possible to explore his or her options. There could be adjustments to status options that reduce reliance on a sponsor available to the immigrant.

Contact a DuPage County, IL Immigration Attorney

If your immigration sponsor has declared bankruptcy or is even considering it, you may rightfully feel uncertain about your immigration status and your financial security. While bankruptcy does not eliminate a sponsor’s obligations, enforcing those rights could require legal action. An Itasca, IL adjustment of status lawyer from Unzueta Law Group, P.C. can review your situation, explain your options, and help you protect your future.  We are a local family firm with more than two decades of experience in immigration law. Call 630-509-2363 to schedule your initial attorney meeting. Se Habla Español.