Federal vs. State Bankruptcy

[lawisthelaw]

What is the name of your state? California

I know there is a difference between Federal and State Bankruptcy courts. Under the current law, which is better for a consumer bankruptcy?

[moburkes]

Huh??????????????????????????????

[bigun]

All bankruptcy proceedings take place in federal court.
In some states, you have a choice between using federal bk exemptions or, state exemptions.

[Who's Liable?]

Originally Posted by lawisthelaw

What is the name of your state? California

I know there is a difference between Federal and State Bankruptcy courts. Under the current law, which is better for a consumer bankruptcy?

There is only Federal BK, there is no state. You can either use federal exemptions or state exemptions... BK 7 is the best for consumers, but it is more difficult to achieve under the new laws.

[Ladynred]

You can either use federal exemptions or state exemptions..

Not quite. You are not allowed to use Federal exemptions in all states. I believe there are only 11 states where you get to choose between Federal or State exemptions.