The Bankruptcy Code is federal law which is applied uniformly throughout the United States. So why would it be different for someone who lives in Santa Ana?
The Bankruptcy Code can be thought of as a sponge that soaks up other laws to fill in the holes. For instance, the Bankruptcy Code states that all property that a person owns can become property of the bankruptcy estate. However, “property” and “ownership” are not defined in the Bankruptcy Code, so state law is used to determine these property rights. Another very important aspect of where the Bankruptcy Code can be different depending on where you live or have lived is exemptions.
A person filing in California will either use California’s own exemptions, the state exemptions of where they previously lived, or the federal exemptions provided in the Bankruptcy Code. The effect of this can be major – For example, the California homestead exemption is $300,000 to $600,000, whereas the homestead exemption in other states is as little as $0. The homestead exemption for Santa Ana residents is currently $600,000.
Not only is California law applicable, but also city-level local policy, regulations, and property values play an important role in your bankruptcy case. For example, if the home values in Santa Ana are increasing or decreasing, this would play a major factor in whether the trustee would seek to liquidate the property.
Heston & Heston has had the pleasure of representing many of Santa Ana’s residents who have filed bankruptcy.
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