North Carolina Bankruptcy Exemptions

As a resident of the State of North Carolina, you do not qualify for federal bankruptcy exemptions. There is property that you can exempt or protect from creditors when you file bankruptcy. You have the option of utilizing the state exemptions. After filing for bankruptcy, this property is safe. Be aware that there are certain debts, which you will not be able to erase in bankruptcy. These are non-dischargeable debts.

There are some limits on certain exemptions such as equity that you have in a home or in a vehicle. The difference between the cost of the item and the amount owed on the item is the definition of equity. If the item is secured by a loan and timely payments are made, the equity is protected by your exemptions. A debtor must generally pay the trustee the value of the non-exempt property to keep the property. If you choose to keep the property, continual timely payments ensures protection of property through bankruptcy.

This is a list of some of the available exemption in the state of North Carolina. There is certain property, which is excluded or exempt that the debtor can keep based on their specific situation and personal income. You can obtain and more detailed list of exemptions by contacting a qualified North Carolina bankruptcy attorney in your area. They will be able to list and explain all of the state exemptions.

Contact an attorney today. The best way to determine which exemptions to utilize is to meet with a qualified and proven bankruptcy attorney who can evaluate your individual case and guide you through the process.


Homestead: Real or personal property, including co-op, used as residence to $18,500; up to $5,000 of unused portion of homestead may be applied to any property, Property held as tenancy by the entity may be exempt against debts owed by only one spouse

Pensions: Tax-exempt retirement accounts, including 401(k)s, 403(b)s, profit-sharing, and money-purchase plans, SEP and SIMPLE IRAs and defined-benefit plans. Traditional and Roth IRAs to $1,095,000, IRAs and Roth IRAs, Firefighters and rescue squad workers, Law enforcement officers, Legislators, Teachers and state employees, Retirement benefits from another state to extent exempt in that state, Municipal, city and county employees

Insurance: Employee group life policy or proceeds, Fraternal benefit society benefits, Life insurance on spouse or children

Miscellaneous: Property of business partnership, Alimony, support, separate maintenance and child support needed for support of debtor and dependents, Support received by a surviving spouse for one year, up to $10,000

Personal Property: Burial plot to $18,500 in lieu of homestead, College savings account up to $25,000, excluding certain contributions within prior year, Health aids, Motor vehicle up to $3,500, Animals, crops, musical instruments, books, appliances, clothing, furnishings and household goods up to $5,000; may add $1,000 per dependent, up to $4,000 total additional (property must have been purchase at least 90 days prior to filing), Wrongful death and personal injury recoveries for person you needed for support

Public Benefits: Workers’ compensation, Unemployment compensation, Crime victims’ compensation, Aid to blind, Public adult assistance under work first program

Tools of Trade: Books, implements, and tools of trade up to $2,000

Wages: Earned but unpaid wages received 60 days before filing for bankruptcy, needed for support

Wildcard: $500 of any personal property, $5,000 of unused homestead or burial exemption

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