Most BK "friendly" state

[kkk1]

I am starting to educate myself about bankruptcy, even though I am not sure I will ever need to file (crosses fingers), however, it is better to be prepared.

What I am curious about is whether certain states are viewed as more BK friendly than others. I know about the two year rule designed to prevent forum shopping. But this makes me even more curious! Obviously the rule is there precisely because there are state to state differences. Since there are a lot of BK "experts" around, anybody care to comment?

TIA

[Dirk Squarejaw]

From what I've read on here, TX seems like the place to be.

I think the reason some people feel some states are better than others are because some states have very small exemptions and its tough to protect your car or house.

[getouttathehole]

Kansas is pretty good, unlimited homestead, furnishings, $20,000 car exemption. Just no wildcard......

[HHM]

I don't know if TX is the most BK friendly, but is the one of the most debtor friendly, in that even if they sue you, a creditor can't do much to you, you cannot garnish wages in TX.

I don't know if there is a best state, but FL is usually considered one of the more BK friendly states.

[DivorceRuinedMe]

I don't know if TX is the most BK friendly, but is the one of the most debtor friendly, in that even if they sue you, a creditor can't do much to you, you cannot garnish wages in TX.

I don't know if there is a best state, but FL is usually considered one of the more BK friendly states.

You really think FL is bk friendly??? All it has is an unlimited homestead and for someone like me with no equity in my homestead, I got screwed. 1K for car and 1K for personal property. To me, that STINKS!

And if you don't have a homestead you only get 4K personal property in lieu of the homestead and that only changed recently. Used to be you only got the 1K!

[pa308]

From what i understand PA doesnt garnish wages and lets you use the federal exemptions.

[kkk1]

Link

http://bankruptcy.lawyers.com/consumer-bankruptcy/Bankruptcy-Law-In-Your-State.html

Here is a listing of all the bankruptcy exemptions listed by state name.

Some of them are quite...ah...interesting.

DE allows you to keep your seat in church.
TX allows you to keep up to two mules.
Alaska: Pets to $1,250.

and the list goes on.

[tallberry]

kkk1, the link you show does not give the current exemptions for IN. IN has an $8,000 wildcard, $15,000 homestead and $300 intangible (cash), in case any one is interested.

[kkk1]

kkk1, the link you show does not give the current exemptions for IN. IN has an $8,000 wildcard, $15,000 homestead and $300 intangible (cash), in case any one is interested.

Yeah, I noticed that it was out of date after I posted. Someone above mentioned FL having a 4K exemption but the old 1K is still on this list.

I basically posted it for comparison purposes to show how different states really are on this matter.

[tallberry]

It's all good, kkk1, it did note that the median income is changing (I think) after March 13 2008. I didn't realize that...so that was good to know.

[krielly]

Most noticable in Vermont is our $75,000 homestead exemption. But as an added bonus, we get the following:

One cow, two goats, ten sheep, ten chickens and animal feed for one winter
Three swarms of bees and their hives and honey
One yoke of oxen or steers or team of two horses
Two harnesses, two halters, two chains, one plow and one ox yoke

[gophermn]

Hey NOW! Move here to Minnesota.
Homestead wildcard excemption (mine was 9K) and if you are involved in letting go your home you basically will get to live for 10 - 11 months free because of the 6 month redemption period. Not that I recommend it, but it is a good way to save $$.

Oh yea, and of course the -30 blowing snow for 6 months :-)

[keepmine]

Let's not forget those states that allow a home to be titled Tenancy by Entirities [sp}. That is a huge loophole for married couples who have equity but, the lions share of the debt is in the name of only one person.

[DivorceRuinedMe]

Let's not forget those states that allow a home to be titled Tenancy by Entirities [sp}. That is a huge loophole for married couples who have equity but, the lions share of the debt is in the name of only one person.

I looked into this for FL and there has been no case law yet in my area to let me NOT claim the homestead and to take the 4K exemption (even though I have very little, if any, equity in my home). I guess I coulda pushed the matter but I didn't want a huge lawyers bill for all the research that I'm sure my lawyer would have to do.

[Rover]

You really think FL is bk friendly???

Florida's Tenancy by the Entireties laws make FL a goldmine for a married person filing BK singly. The property that the married person owns with the spouse as tenancy by the entireties can't be touched.