Bankruptcy/Creditors Remedies exclusively federal?

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General Tso
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Bankruptcy/Creditors Remedies exclusively federal?

Postby General Tso » Fri Jul 30, 2010 12:36 pm

is this area governed exclusively by federal law?

cake
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Re: Bankruptcy/Creditors Remedies exclusively federal?

Postby cake » Fri Jul 30, 2010 3:41 pm

I've not taken Bankruptcy, but I did work in a BK firm for a couple of years. Since Federal courts have exclusive jurisdiction over bankruptcy matters, I don't think there's any way to get at it from the state (or other) level without stay relief being granted.

Renzo
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Re: Bankruptcy/Creditors Remedies exclusively federal?

Postby Renzo » Sat Jul 31, 2010 3:57 pm

That's only half right. It's always done in federal court, but for personal bankruptcies the court applies whatever exemptions exist in your state.

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General Tso
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Re: Bankruptcy/Creditors Remedies exclusively federal?

Postby General Tso » Sat Jul 31, 2010 4:25 pm

Renzo wrote:That's only half right. It's always done in federal court, but for personal bankruptcies the court applies whatever exemptions exist in your state.


yup this is exactly right.

CA is an opt-out state, and recent case law in CA has held that inherited IRAs are not exempt. Opt-in states following the federal statute have exempted them.

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General Tso
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Re: Bankruptcy/Creditors Remedies exclusively federal?

Postby General Tso » Sat Jul 31, 2010 6:48 pm

betasteve wrote:
General Tso wrote:
Renzo wrote:That's only half right. It's always done in federal court, but for personal bankruptcies the court applies whatever exemptions exist in your state.


yup this is exactly right.

CA is an opt-out state, and recent case law in CA has held that inherited IRAs are not exempt. Opt-in states following the federal statute have exempted them.

If you knew, why'd you ask?


I didnt know at the time I asked...my boss asked me to research this and I was wondering if I needed to waste my time searching state law. As it turns out, I did need to.

cake
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Re: Bankruptcy/Creditors Remedies exclusively federal?

Postby cake » Sat Jul 31, 2010 9:10 pm

Renzo wrote:That's only half right. It's always done in federal court, but for personal bankruptcies the court applies whatever exemptions exist in your state.

I would argue that this is only tangentially related, since the OP's question was about remedies, but apparently his framed the question more narrowly than he wanted his answer :lol:




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