Do bankruptcy laws vary from state to state?

Bankruptcy Attorney
[bkvideo file=”/bkvideos/Do bankruptcy laws vary complete.mp4″ width=”590″ height=”443″ thumb=”default”]

Bankruptcy is federal law and is applied uniformly across the country in most respects. However, bankruptcy exemptions are generally governed by state law. So, the federal bankruptcy law incorporates the state exemption law to determine the result in any particular case. Furthermore, recent changes in the bankruptcy law have resulted in situations where the exemption laws of a state where the consumer used to live – but no longer lives now – must be applied to that consumer’s bankruptcy case.
All of this makes for a rather complex analysis to determine whether or not a consumer’s property is protected and if so to what extent when he files for bankruptcy. So the bottom line is that although bankruptcy is federal law, its application does vary from state to state.

Leave a Reply

Your email address will not be published. Required fields are marked *