QUESTION
Do any state laws apply to bankruptcy? How?
Asked on Jun 15th, 2015 on Bankruptcy - New Jersey
More details to this question:
Are there any state laws that can affect your bankruptcy?
8 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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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.
Answered on Jun 16th, 2015 at 10:31 AM
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.
Answered on Jun 15th, 2015 at 4:05 PM
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.
Answered on Jun 15th, 2015 at 4:03 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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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.
Answered on Jun 15th, 2015 at 3:09 PM
Yes, the state law governs exemptions.
Answered on Jun 15th, 2015 at 2:53 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes amongst other things State laws generally define your property rights.
Answered on Jun 15th, 2015 at 2:02 PM
Deborah F. 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.
Answered on Jun 15th, 2015 at 2:02 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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The exemptions are either federal or state and they can effect your case greatly.
Answered on Jun 15th, 2015 at 1:26 PM