Bankruptcy law in the United States is federal. Title 11 of the U.S. Code governs all bankruptcy proceedings, and bankruptcy courts are units of the federal district court system. The types of relief available — Chapter 7 liquidation, Chapter 13 wage-earner repayment, Chapter 11 reorganization — are the same in every state because they arise from a single federal statute.

Chapter 7 discharges most unsecured debts but requires passing a means test based on the median income of the state where the debtor lives. Chapter 13 allows debtors to catch up on secured debts over a three-to-five-year court-supervised plan. Chapter 11 is typically used by businesses, though high-income individuals also use it to restructure large or complex debts.

The automatic stay — the immediate court order that halts most collection actions, foreclosures, repossessions, and lawsuits from the moment of filing — is a creature of federal law and applies nationally.

Where state law matters most is in the exemptions. Every state sets its own list of assets a debtor may keep through bankruptcy: homestead equity, vehicle value, retirement accounts, tools of the trade, and personal property. Some states allow debtors to choose between state exemptions and the federal bankruptcy exemptions; others require use of state exemptions only. Homestead exemptions alone range from a few thousand dollars to unlimited in Florida and Texas.

An attorney who knows your state's exemption scheme can help you protect the maximum amount of your property. The state grid below links to bankruptcy attorneys in every jurisdiction.