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North Carolina Bankruptcy Exemptions
The North Carolina bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in North Carolina. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in North Carolina you may also use certain federal exemptions in addition to your North Carolina exemptions. |
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ASSET
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EXEMPTION DESCRIPTION
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LAW SECTION
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Homestead
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Real or personal property, including co-op, used as residence to
$35,000, $60,000 if 65 or older and spouse is deceased (husband and wife my double); up to $5000 of unused homestead may be applied to
any property
Property held as tenancy by the entirety may be exempt against debts
owed by only one spouse
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1C-1601(a)(1), (2)
In re Crouch, 33 B. R. 271
(E. D. N. C. 1983)
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Insurance
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Employee group life policy or proceeds
Fraternal benefit society benefits
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58-58-165
58-24-85
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Miscellaneous
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Property of business partnership
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59-55
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Pensions
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Firefighters & rescue squad workers
Law enforcement officers
Legislators
Municipal, city & county employees
Teachers & state employees
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58-86-90
143-166.30(g)
120-4.29
128-31
135-9, 135-95
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Personal Property
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Animals, crops, musical instrument, books, clothing, appliances,
household goods & furnishings to $5500 total; may add $1,000 per
dependent, up to $4,000 total additional
Burial plot to $10,000, in lieu of homestead
Health aids
Motor vehicle to $3500
Personal injury recoveries for person upon whom the you were dependent for support
Wrongful death recoveries for person upon whom the you were dependent for support
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1C-1601(a)(4)
1C-1601(a)(1)
1C-1601(a)(7)
1C-1601(a)(3)
1C-1601(a)(8)
1C-1601(a)(8)
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Public Benefits
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AFDC, special adult assistance
Aid to blind
Crime victimsí compensation
Unemployment compensation
Workersí compensation
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108A-36
111-18
15B-17
96-17
97-21
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Tools of Trade
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Implements, books & tools of trade to $2,000
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1C-1601(a)(5)
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Wages
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Earned but unpaid wages received 60 days before filing for
bankruptcy, needed for support
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1-362
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Wild Card
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$5,000 less any amount claimed for homestead or burial exemption, of
any property
$500 of any property
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1C-1601(a)(2)
Art. X of N.C. Const. |
For more information on filing bankruptcy in North Carolina explore North Carolina Bankruptcy Law.
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