Can you file bankruptcy under state rules and federal rules? 15 Answers as of January 18, 2013

Can you file bankruptcy under state rules in addition to federal rules? Which is most advantageous for a personal bankruptcy? I read this in preparing to file even though I thought all bankruptcies were handled in federal bankruptcy court.

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Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
A bankruptcy can only be filed in a federal bankruptcy court, although some States have provisions for other forms of debt relief, such as an assignment for the benefit of creditors, for example.
Answer Applies to: Illinois
Replied: 12/9/2010
Henry, DeGraaff & McCormick, P.S. | Jacob DeGraaff
The rules you are referring to are most likely the exemptions, which decide what property you get to keep in a bankruptcy filing. All bankruptcies are Federal court matters, but there are state laws that apply. There are federal exemptions in the bankruptcy code, and there are also state exemptions in some states. Some states allow you to choose which set of exemptions to use, others require that you use one or the other. Even when you can choose which set to use, you can only use one set of exemption laws in your bankruptcy case, so for instance you cannot use the Washington State homestead exemption (which is a very generous $125,000) and also use the Federal "wildcard" exemption to cover other property.
Answer Applies to: Washington
Replied: 1/18/2013
Maclean Chung Law Firm
Maclean Chung Law Firm | G. Thomas MacLean Jr.
There are state and federal exemptions you can choose between but all Bankruptcy is handled in Federal Court. Which exemptions to choose will depend on your individual circumstances.
Answer Applies to: California
Replied: 12/9/2010
Steven D. Keist, Attorney at Law
Steven D. Keist, Attorney at Law | Steven D. Keist
Bankruptcy is filed under the Federal Rules, but Arizona uses the State exemptions in regard to personal property.
Answer Applies to: Arizona
Replied: 12/9/2010
Law Office of L. Paul Zahn
Law Office of L. Paul Zahn | Paul Zahn
Bankruptcies are filed in federal court. The US constitution provides that federal court has exclusive jurisdiction over the issue of bankruptcies. State laws come into play in determining what assets are exempt and which assets are not exempt. Exempt assets are kept by the petitioner (although non-exempt assets may also be kept, but under different laws). Retaining a good bankruptcy attorney can help you through this process. Please feel free to contact me if you are looking for an attorney.
Answer Applies to: California
Replied: 12/9/2010
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    To file bankruptcy, you will file in a FEDERAL BANKRUPTCY COURT under federal bankruptcy laws. State laws determine exemptions (the amount of stuff you can protect) and this is determined by residency (where you have lived for the better part of a certain period of time).
    Answer Applies to: California
    Replied: 12/9/2010
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    In California, you have to take the California exemptions which are more favorable than the Federal Exemption.
    Answer Applies to: California
    Replied: 12/9/2010
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    All Bankruptcys are handled in Federal Court. What I think you are referring to is the exemption laws. You can chose between federal or state laws.
    Answer Applies to: Tennessee
    Replied: 12/9/2010
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    All bankruptcy cases are in the bankruptcy court, you have a choice of State or Federal exemptions.
    Answer Applies to: New Hampshire
    Replied: 12/9/2010
    Law Office of Raymond J. Dague, PLLC
    Law Office of Raymond J. Dague, PLLC | Raymond J. Dague
    There is not such thing as a "state" bankruptcy unless you mean a state receivership, which is a rarely used vehicle. Receivership really applies to businesses, and not to individuals.
    Answer Applies to: New York
    Replied: 12/9/2010
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Bankruptcy is federal and is codified in 11 United States Code 101, et. seq. Rules are procedural and there are the Federal Rules of Bankruptcy Procedure which effectuate the Code. Certain state law applies in bankruptcy cases, such as regarding exemptions and things, but I'm not sure if that's what you meant.
    Answer Applies to: California
    Replied: 12/8/2010
    The Shakoori Law Group
    The Shakoori Law Group | Rachelle Shakoori
    This is a very broad question and depends on the state you live in. For example, in California state statute is used to exempt your properties. You need to consult with a local attorney for a better understanding of the law. Most attorneys provide free consultation.
    Answer Applies to: California
    Replied: 12/8/2010
    Royzman Law Firm
    Royzman Law Firm | Natella Royzman
    Bankruptcy is only available under federal law and through the federal bankruptcy courts. You may have been reading about an assignment for the benefit of creditors, which is a state law procedure that has some similarities to bankruptcy, but only applies when there are assets to
    liquidate. Or perhaps you may be thinking of exemptions available in bankruptcy cases, which can be (and in California are in fact) determined by state law.
    Answer Applies to: California
    Replied: 12/8/2010
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    In California you have to pick one set or the other.
    Answer Applies to: California
    Replied: 12/8/2010
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    All bankruptcy cases are filed in United States Bankruptcy Court. State law exemptions apply. For specific advice regarding the facts of your matter, call me.
    Answer Applies to: California
    Replied: 12/8/2010
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