Legal Question in Bankruptcy in California
Does all Bankruptcy laws apply in every state?
I would like to know since bankruptcy laws are federal laws, am i incorrect in thinking the same laws apply in every state on bankruptcy ? Thank You
2 Answers from Attorneys
Re: Does all Bankruptcy laws apply in every state?
The laws generally apply the same, except for the exemption schemes. Certain states -- like California -- have their own ways to exempt property. Some states exempt property that CA does not -- like TX exempts up to 2 firearms and 2 horses, mules or donkeys plus a saddle, blanket and bridle for each, 12 head of cattle, 60 head of other livestock, etc. West Virgina exempts unripe crops. You won't find that listed in CA's exemptions. Also, the federal courts in the different districts might interpret laws a bit differently.
Re: Does all Bankruptcy laws apply in every state?
The exemption laws vary from state to state. Congress gave states the right to use the federal exemptions or the state's set of exemptions. This is called "opting out" of the federal exemption system. While bankruptcy is a federal system, you nonetheless are bound by the choice your state made. In some states like California the state opted out of the federal exemptions but set up 2 state systems to choose from. One of those is very similar to the federal exemptions. You will have to look at the state laws to know what your options are. There is a good comparison of the 2 California exemption systems on my web site at: http://www.ca-bankruptcy-attorneys.com/california_exemption_chart.html
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