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Do Bankruptcy Laws Vary From One State to Another?

Posted By Allmand Law Firm, PLLC || 5-Jul-2016

Bankruptcy laws do not vary from one state to another. Meaning, laws are the same for all states. However, when you file bankruptcy each state may have different median income amounts you need to meet in order to qualify. Exemptions you qualify for may also vary depending on the type of property. It is important debtors discuss their situation with their bankruptcy attorney to understand state and federal exemptions available and qualifications.

The means test helps debtors learn if they qualify for bankruptcy. The test also shows the court you meet required standards to file. When the bankruptcy code was revised in 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act became law, thus, requiring debtors to take the means tests. It reviews household income of the debtor but the median amount may vary from one state to another.

If your income is under the median amount you may qualify for Chapter 7 bankruptcy. If it is above the amount you may qualify for Chapter 13 bankruptcy. Your attorney will review information with you so you know which chapter provides the best solution for your situation. When it comes to creditors, each state may have different options in how they can pursue a debtor not in bankruptcy.

For instance, creditors can garnish wages in certain states to collect on a debt. If wages cannot be garnished a bank account is another option. Bankruptcy can help stop or prevent such collection actions, but it helps to review with your attorney possible forms of collection debt collectors can do in your state.

At Allmand Law Firm, PLLC, our attorneys have decades of experience helping Texans find lasting relief from debt. If you are considering bankruptcy or wish to learn more about your debt relief options, contact our Dallas / Fort Worth bankruptcy attorneys for a free financial empowerment session.

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