State Bankruptcy Laws
Summaries, bankruptcy laws help for debtors after new law reform
Each state enacts unique regulation of legal processes that are essential for determination of rights between debtors and creditors. For instance, property title, ownership rights, exemptions, foreclosure, repossession, collection practices, and the litigation process itself in the event of disputes seeking legal remedies are all matters of state law. These rights and duties are incorporated into Chapter 7 & 13 proceedings in each local Federal District and Division. Because of state variations, results received by debtors across the nation range from the threshold of poverty to generous.
Bankruptcy Laws for All 50 States
All debtors seeking legal advice should contact a qualified local attorney. The information provide below is general in nature, is not intended as legal advice, and further, is not specific to any person or circumstance. Also be aware of new laws (effective 2005) that place an upper limit on the value of all state homestead exemptions.
Note - Placing "value" on property is a subjective art, and most state courts struggle to find a workable solution. Appraisals, whether based on liquidation, as-is, auction, wholesale, retail, or market value, necessarily rely on the upon the opinion of an appraiser in a hypothetical situation. In Chapter 7 & 13, most trustees tend to adopt a "garage sale liquidation value" when allowing personal property exemptions. Real estate equity tends to be valued by trustee, based on experience, upon the expected price at an estate liquidation auction.