If that is the case, why will CSE still enforce and collect on the judgement? I mean if it is no longer considered associated with child support. I know for a fact that here in WA CSE will enforce the collection of arrears and will also collect on the interest, if the arrears have been reduced to a judgement. Are bankruptcy laws also state specific, and if so might it be different here in WA vs. where Gracie is (sorry Gracie can't remember where you are from)?
Nope, bankruptcy courts are federal.
"Each of the 94
federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court.
Bankruptcy cases cannot be filed in state court. Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan."
United States Bankruptcy Courts
ETA: (From Chapter 7 bankruptcy basics)
"Among the schedules that an individual debtor will file is a schedule of "exempt" property. The Bankruptcy Code allows an individual debtor (4) to protect some property from the claims of creditors because it is exempt under federal bankruptcy law or under the laws of the debtor's home state. 11 U.S.C. § 522(b).
Many states have taken advantage of a provision in the Bankruptcy Code that permits each state to adopt its own exemption law in place of the federal exemptions. In other jurisdictions, the individual debtor has the option of choosing between a federal package of exemptions or the exemptions available under state law. Thus, whether certain property is exempt and may be kept by the debtor is often a question of state law. The debtor should consult an attorney to determine the exemptions available in the state where the debtor lives."
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html
So, it's a federal thing, but states may decide what can be exempt from bankruptcy.
