Is Bankruptcy Law the Same in Every State?

by DeLadurantey Law Office, LLC on November 24, 2014

United States BlueIf you are planning to file for bankruptcy protection, you may be wondering if it is more beneficial to file in one state over another. The answer is “no.” Bankruptcy law is federal law and it does not vary from one state to another. This prevents individuals and businesses from “forum shopping,” or trying to file in a court that is more advantageous to them than where they reside.

Although bankruptcy courts follow the same Bankruptcy Code, there is a difference among the states in qualifying to file a case because each state has its own household median income amount. The means test is used by all bankruptcy courts to determine if you are eligible to file a case, but your household income is compared to the state’s median income amount. Thus, because each state’s median income amount varies, the eligibility to file a case can vary. If your income is lower than the median amount of the state, you are eligible to file a Chapter 7. If it exceeds the median amount, you may qualify for a Chapter 13 bankruptcy.

It should also be noted that there are several states that offer exemption options in addition to the federal property exemptions. Thus, if you file your bankruptcy case in a state that has state property exemptions, it can impact the outcome of your case.

If you have questions about filing a personal bankruptcy case, we can provide the answers. Let us help you determine if filing a Chapter 7 or Chapter 13 bankruptcy is the best debt relief option for you.

Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC for all your Chapter 7 and Chapter 13 bankruptcy needs. Whether you need debt negotiations or debt relief, or even foreclosure defense, DeLadurantey Law Office will handle bankruptcy matters for the following locations – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. DeLadurantey Law Office, LLC can be contacted by phone at (414) 377-0518.

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