Is bankruptcy federal or state law?

Federal. Cases are filed under the Bankruptcy Code, title 11 of the United States Code, and the district courts have original and exclusive jurisdiction over cases under title 11 (Bankr. D. Kan. official guidance — Preface). State law still supplies answers the Code defers to, but there is no separate state bankruptcy statute and no state bankruptcy court.

Do state laws apply in a bankruptcy case?

Yes, in the places the Code sends you there. The stay provisions reference applicable State laws governing notices of interests or liens in real property, and the definitions section defines an attorney or accountant as one authorized under applicable law (11 U.S.C. § 362; 11 U.S.C. § 101). Which state's rules apply is a common question worth raising with a bankruptcy attorney.

Why does my state matter if bankruptcy is federal?

Two reasons. State law defines much of what you own and how liens against it work, and the Code repeatedly defers to applicable State law on those questions. Separately, your state sits inside a federal judicial district whose bankruptcy court has its own local rules and forms. We publish state-specific figures on the state pages rather than restating them here.

Can a local rule override the Bankruptcy Code?

No. Local rules must be consistent with, and must not duplicate, federal statutes and the national rules, and they may not prohibit or limit use of the Official Forms (D. Kan. LBR compilation, effective Dec. 1, 2024). Western Michigan says the same in reverse: its rules do not apply where they are inconsistent with the Code or the national rules.

Where do I find the rules that apply to my case?

Start with the bankruptcy court for the federal district covering your county. Courts publish their local rules, standing and general orders, local forms, and often individual judges' procedures on their websites (S.D. Tex. BLR 1001-1; W.D. Okla. LBR 1001-1). The national rules and the Official Forms apply everywhere on top of that (Fed. R. Bankr. P. 1001).

Fundamentals

How federal bankruptcy law, state law, and local court rules fit together

Bankruptcy is federal law. Cases are filed under title 11 of the United States Code, and the district courts have original and exclusive jurisdiction over them. State law still matters, because the Code repeatedly points to applicable State law for questions like property interests and liens. Each bankruptcy court then adds local rules and forms of its own.

Key points

Bankruptcy cases are filed under one national statute, the Bankruptcy Code, and the district courts hold original and exclusive jurisdiction over cases under title 11.
The Federal Rules of Bankruptcy Procedure and the Official Bankruptcy Forms govern national procedure in every district.
Each bankruptcy court adopts local rules that supplement the national rules, and those local rules must stay consistent with the Code rather than duplicate it.
State law is not displaced: the Code defers to applicable State law on questions such as liens on real property and who may practice law or accounting in a case.
Local practice can reach practical things like which Chapter 13 plan form you file and which judge's individual procedures apply.

People often assume bankruptcy works differently in each state the way divorce or landlord-tenant law does. It does not. There is one federal Bankruptcy Code, but where you file still changes real things about your case, because state law fills in gaps the Code leaves open and every bankruptcy court writes its own local rules on top. This page explains the three layers and how they interact.

Is bankruptcy federal law or state law?

Bankruptcy is federal. The Bankruptcy Code is title 11 of the United States Code, enacted by Congress and amended many times since, most significantly by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Bankr. D. Kan. official guidance — Preface). Jurisdiction is federal too. The same official guidance quotes the governing statute: the district courts have original and exclusive jurisdiction of all cases under title 11, and original but not exclusive jurisdiction of civil proceedings arising under, arising in, or related to those cases. In practice the district court refers that work to the bankruptcy judges, who sit as a unit of the district court. That is why there is no such thing as a state bankruptcy court, and why a creditor's state court lawsuit and your bankruptcy case are handled by two different court systems. State judges continue to decide state law questions; the bankruptcy court decides the bankruptcy case.

One statute nationwide: the Bankruptcy Code, title 11 of the United States Code
Filed in a United States Bankruptcy Court, never in state court
Federal jurisdiction over cases under title 11 is original and exclusive

Why does the mix of federal, state, and local rules matter in a case?

It matters because the Code does not try to answer every question itself. It repeatedly points outward to other law. The automatic stay provisions, for example, contemplate orders recorded in compliance with applicable State laws governing notices of interests or liens in real property, and direct that any Federal, State, or local governmental unit that accepts such notices must accept a certified copy of the court's order for indexing and recording (11 U.S.C. § 362). The definitions section works the same way: an accountant or an attorney is one authorized under applicable law, meaning state licensing law, not a federal definition (11 U.S.C. § 101). So a case can be entirely federal in form while turning on state law questions underneath. Add local court rules and you get three layers that a filer experiences as one process. Understanding which layer answers a question tells you where to look for the answer.

Federal layer: what the law does — discharge, the stay, priorities, eligibility
State layer: what you own and how liens on it work, plus who may practice in your case
Local layer: how you actually file, what forms you use, and how hearings are scheduled

How do the three layers actually fit together?

The Federal Rules of Bankruptcy Procedure, together with the Official Bankruptcy Forms, govern the procedure in cases under the Bankruptcy Code, and they must be construed and employed by both the court and the parties to secure the just, speedy, and inexpensive determination of every case and proceeding (Fed. R. Bankr. P. 1001). Local rules sit beneath those national rules. Local rules supplement or, if permitted, modify the Federal Rules of Bankruptcy Procedure, and are construed to be consistent with them (Ariz. LBR 1001-1). Below the local rules sit standing orders, general orders, and individual judges' procedures. Kansas publishes procedural guidelines of individual bankruptcy judges to aid attorneys on procedural matters before a particular judge, and Texas Southern points practitioners to judges' individual court procedures on the court's website (D. Kan. LBR compilation; S.D. Tex. BLR 1001-1). Some districts also incorporate their district court's civil rules directly (Bankr. S.D. Ga. Uniformity of Practice).

The three layers, from broadest to most local
Layer	What it governs	Where it comes from
The Bankruptcy Code, title 11	The substantive law of the case	Congress; district courts have original and exclusive jurisdiction
Federal Rules of Bankruptcy Procedure and Official Forms	National procedure in every district	Fed. R. Bankr. P. 1001
Local rules, standing orders, judges' procedures	Filing mechanics, local forms, hearing practice	Each district's bankruptcy court

What are the main limits on local court rules?

Local rules are real and enforceable, but they are bounded. The delegating authority quoted in the Kansas local rules requires that local rules be consistent with, but not duplicate, federal statutes and the national rules; that they not prohibit or limit using Official Forms; and that they conform to the uniform numbering system prescribed by the Judicial Conference (D. Kan. LBR compilation, effective Dec. 1, 2024). Western Michigan states the limit from the other direction: its local rules apply except to the extent they are inconsistent with the Code, the Federal Rules of Bankruptcy Procedure, or any rule promulgated by the Judicial Conference (W.D. Mich. LBR 1001). Local rules also yield to case-specific orders. In Southern Illinois, to the extent an order in a specific case conflicts with the local rules, the order controls (S.D. Ill. LBR 1001). Courts may also waive a local rule on their own motion or on request (W.D. Okla. LBR 1001-1).

Must be consistent with, and must not duplicate, the Code and the national rules
Must not prohibit or limit use of the Official Forms
An order entered in your specific case can override a conflicting local rule
A judge may modify how the rules apply in a given case (S.D. Tex. BLR 1001-1)

How does this differ between Chapter 7 and Chapter 13?

The layering is identical, but it bites differently. Chapter 13 is where local rules are usually most visible, because many districts require a court-specific plan document. In the Central District of Illinois, all Chapter 13 plans must be filed using the local plan form available on the court's website, completely filled in, and signed and dated (ILCB Local Bankruptcy Rules, effective Oct. 1, 2024). Chapter 13 also carries its own federal eligibility concept: an individual with regular income means an individual whose income is sufficiently stable and regular to enable payments under a chapter 13 plan (11 U.S.C. § 101). Federal fees differ by chapter as well. The Chapter 7 filing fee is $245 (28 U.S.C. § 1930(a)(1)(A), (f)(1)) and the Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)). Both chapters add a $78 administrative fee, and Chapter 7 adds a $15 trustee surcharge.

Federal fees set nationally, by chapter
Fee	Chapter 7	Chapter 13
Statutory filing fee	$245	$235
Administrative fee	$78	$78
Trustee surcharge	$15	Not applicable

What do people most commonly get wrong about this?

The most common error is treating bankruptcy as state law and searching for a state bankruptcy statute. There isn't one. The second is the opposite mistake: assuming that because the law is federal, the process is identical everywhere. It is not. Local rules, local forms, standing orders, and individual judges' procedures vary district by district, and courts enforce them. Southern Illinois warns that failure to comply with its local rules may result in denial of the relief requested, dismissal, or other sanctions (S.D. Ill. LBR 1001). A third error is assuming a local rule can rewrite the Code. It cannot; local rules supplement national law and must remain consistent with it. Finally, people underestimate how much local vocabulary matters. Districts define their own terms, from what counts as filing to what a paper or document is (Bankr. D. Utah LBR 1001-1; D. Conn. Bankr. L. R. 1001-2).

There is no state bankruptcy code to look up
Federal law does not mean uniform local practice
Local rules supplement the Code; they cannot contradict it
Read your own district's rules, not another district's

Frequently asked questions

Is bankruptcy federal or state law?: Federal. Cases are filed under the Bankruptcy Code, title 11 of the United States Code, and the district courts have original and exclusive jurisdiction over cases under title 11 (Bankr. D. Kan. official guidance — Preface). State law still supplies answers the Code defers to, but there is no separate state bankruptcy statute and no state bankruptcy court.
Do state laws apply in a bankruptcy case?: Yes, in the places the Code sends you there. The stay provisions reference applicable State laws governing notices of interests or liens in real property, and the definitions section defines an attorney or accountant as one authorized under applicable law (11 U.S.C. § 362; 11 U.S.C. § 101). Which state's rules apply is a common question worth raising with a bankruptcy attorney.
What are local bankruptcy rules?: They are rules each bankruptcy court adopts to govern practice in its own district. They supplement, and where permitted modify, the Federal Rules of Bankruptcy Procedure, and are construed to be consistent with them (Ariz. LBR 1001-1). Typical subjects include filing mechanics, local plan forms, notice requirements, and hearing scheduling. They are binding, and noncompliance can carry consequences.
Why does my state matter if bankruptcy is federal?: Two reasons. State law defines much of what you own and how liens against it work, and the Code repeatedly defers to applicable State law on those questions. Separately, your state sits inside a federal judicial district whose bankruptcy court has its own local rules and forms. We publish state-specific figures on the state pages rather than restating them here.
Can a local rule override the Bankruptcy Code?: No. Local rules must be consistent with, and must not duplicate, federal statutes and the national rules, and they may not prohibit or limit use of the Official Forms (D. Kan. LBR compilation, effective Dec. 1, 2024). Western Michigan says the same in reverse: its rules do not apply where they are inconsistent with the Code or the national rules.
Where do I find the rules that apply to my case?: Start with the bankruptcy court for the federal district covering your county. Courts publish their local rules, standing and general orders, local forms, and often individual judges' procedures on their websites (S.D. Tex. BLR 1001-1; W.D. Okla. LBR 1001-1). The national rules and the Official Forms apply everywhere on top of that (Fed. R. Bankr. P. 1001).

Sources

Bankr. D. Kan. official guidance — Preface — Preface to the Local Rules, U.S. Bankruptcy Court for the District of Kansas
Fed. R. Bankr. P. 1001 — Scope; Title; Citations; References to a Specific Form
11 U.S.C. § 101 — Definitions · official source
11 U.S.C. § 362 — Automatic stay · official source
D. Kan. LBR compilation (effective Dec. 1, 2024)
Ariz. LBR 1001-1 — General Scope and Definitions
W.D. Mich. LBR 1001 — Scope, Citation, and Definitions
S.D. Ill. LBR 1001 — Scope of Rules and Forms; Short Title
W.D. Okla. LBR 1001-1 — Scope of Rules and Forms; Definitions
S.D. Tex. BLR 1001-1 — General
ILCB Local Bankruptcy Rules (effective Oct. 1, 2024) — Local Rules, U.S. Bankruptcy Court for the Central District of Illinois
Bankr. S.D. Ga. Uniformity of Practice
Bankr. D. Utah LBR 1001-1 — Local Rules — General
D. Conn. Bankr. L. R. 1001-2 — Definitions
28 U.S.C. § 1930(a)(1)(A), (f)(1)
28 U.S.C. § 1930(a)(1)(B)
Bankruptcy Court Miscellaneous Fee Schedule, Item 8
Bankruptcy Court Miscellaneous Fee Schedule, Item 9

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Sources verified July 27, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

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