Do any state laws apply to bankruptcy? How? 11 Answers as of June 16, 2015

Are there any state laws that can affect your bankruptcy?

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Ronald K. Nims LLC | Ronald K. Nims
Yes, many state laws apply to bankruptcy. Some affect every bankruptcy, some only become involved in cases with unusual fact situations. Examples of state laws that affect most bankruptcies are; -state laws control property exemptions. -state community property vs. common law property laws control what ownership of married persons debts and property. -state court judgments in matters that affect the bankruptcy are binding on the bankruptcy court.
Answer Applies to: Ohio
Replied: 6/16/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
The bankruptcy court uses state law to determine property rights and "exemptions". It also uses state law to determine "fraud" and things related to that.
Answer Applies to: California
Replied: 6/15/2015
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Actually there are a number of laws that may apply. Exemption laws, state fraudulent transfer statutes, and the like. Meet with a lawyer face to face to get your questions answered. In my meetings, I ask between 40 and 50 questions. Once I have the answers to these questions, I can explain the entire BK process to you. I charge a nominal fee for the consultation. At the end of the meeting, I quote a flat fee with payment arrangements. There are lawyers who offer free consultations, about 15 minutes. Because I charge a nominal fee, I spend an hour with you. I have successfully filed THOUSANDS of cases over the past thirty years.
Answer Applies to: Colorado
Replied: 6/15/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
The most obvious state laws that apply in bankruptcy cases are exemption laws, that define what someone has the right to keep in spite of the bankruptcy. Theses laws vary widely from state to state, but you need to be a resident of the state for at least two years in order to be eligible to use these laws. Otherwise, you would have to rely on the laws in the state where you used to live for protection in bankruptcy court.
Answer Applies to: Nevada
Replied: 6/15/2015
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
Yes. There are many. In California the exemptions are determined by state law. Anything that is not specifically addressed by the Federal Laws and Procedures is subject to the state law. Besides Federal and State law there are procedures, rules and customs that must be adhered to. If you have questions that relate to your situation you should go see a knowledgeable local bankruptcy attorney for advice.
Answer Applies to: California
Replied: 6/15/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    While the bankruptcy code is a federal law, it cannot avoid having some interaction with State law. First of all, the Code allows a state to prohibit its residents from using the federal bankruptcy exemptions, thereby limiting them to the state's exemptions, which may be more or less generous than the exemptions in the Bankruptcy Code. Secondly, exactly what is property, and the forms in which property may be held, are based in state law, and the (federal) bankruptcy courts must respect those property rules, unless they are specifically trumped by federal law. These are the basics. There is more, which is outside the scope of this site. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 6/15/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Yes, the state law governs exemptions.
    Answer Applies to: California
    Replied: 6/15/2015
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Yes. In many locations, state laws control what property you can and cannot keep and protect from your creditors. And depending upon how long you have lived in your current location the laws may be from your home state or they may be from a state in which you resided quite some time ago.
    Answer Applies to: Colorado
    Replied: 6/15/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes amongst other things State laws generally define your property rights.
    Answer Applies to: Michigan
    Replied: 6/15/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    In different ways, yes the state laws also have affect in bankruptcy.
    Answer Applies to: New York
    Replied: 6/15/2015
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    The exemptions are either federal or state and they can effect your case greatly.
    Answer Applies to: New Jersey
    Replied: 6/15/2015
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