Is bankruptcy tried in state district court?
On One Hand: Bankruptcy is a Federal ProcedureBankruptcy is a legal proceeding that is available under federal law, which means that bankruptcy proceedings take place in federal courts. A federal court is a court organized under federal law. Federal district courts are located throughout the nation in each state. This can be confusing because the federal district court located in Nevada, for example, is called the United States District Court, District of Nevada.On the Other: State Laws Apply to BankruptcyEven though bankruptcy is a Federal procedure that takes place in a Federal district court, it still matters where you live because state law governs some of the details on how bankruptcy works. Most importantly, for example, state law determines what type and amount of exemptions you can claim.Bottom LineBankruptcy is available only under Federal law and only in Federal district courts. However, Federal district courts are organized and labeled according to what state they are locate
