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Bankruptcy Court Information One Should KnowWhile the bankruptcy code is a federal statutory law, individual states have the right to establish other regulations that affect debtors and creditors. These state laws cannot modify the federal code but may have an effect on how the bankruptcy laws apply to different petitioners. For instance, if you were to file in California bankruptcy court, the laws surrounding community property in that state could affect the way your assets are treated by the court if your spouse is not legally involved in the bankruptcy.
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