The sale of property subject to a lien to satisfy the debt is also governed by state statutory law. Federal and state statutes, and the federal Consumer Credit Protection Act,also limit the type of property that is can be used to satisfy a debt. A debtor may attempt to fraudulently convey a piece of property to avoid having it seized. State laws seek to prevent this type of property transfer. Many states have adopted the Uniform Fraudulent Conveyances Act or its successor, the Uniform Fraudulent Transfer Act.
Bankruptcy law is governed by federal statute and supplants state debtor-creditor law.