North Carolina Bankruptcy Exemptions
The chart below contains a summary of North Carolina state bankruptcy exemptions and other relevant statutory laws.
Click here for complete State of North Carolina bankruptcy exemptions laws.
Note:Federal bankruptcy exemptions are not available.
Personal exemptions allowed by North Carolina Bankruptcy Laws
Note: Under the 2005 bankruptcy law, almost all types of tax-exempt retirement accounts are exempt in bankruptcy whether state or Federal exemptions are used. Exemptions for 401(k)s, 403(b)s, profit-sharing and money purchase plans, and defined benefit plans include the entire account amounts. However, with traditional and Roth IRAs, the exemption is limited to a total value of $1,171,650 per person for all accounts held by the debtor (not per account). The total value amount is adjusted every three years for inflation. The relevant statutes: 11 U.S.C. §522(d)(12) for Federal bankruptcy exemptions; 11 U.S.C. §522(b)(3)(C) for state bankruptcy exemptions.
| ASSET | EXEMPTION | LAW |
|---|---|---|
| North Carolina Homestead | Real or personal property used as residence to $35,000; $60,000 if debtor is 65 years old or older | 1C-1601(a)(1),(2) |
| Wages | Earned but unpaid wages received 60 days before filing for bankruptcy (needed for support) | 1-362 |
| Automobile | Up to $3,500 | 1C-1601(a)(3) |
| Other property | Employee group life policy or proceeds | 58-58-165 |
| Alimony, support, separate maintenance, and child support necessary for support of debtor and dependents | 1C-1601(a)(12) | |
| Animals, crops, musical instruments, books, clothing, appliances, household goods and furnishings to $5,000 total | 1C-1601(a)(4),(d) | |
| Health aids | 1C-1601(a)(7) | |
| Burial plot | 1C-1601(a)(1) | |
| Implements, books, and tools of trade to $2,000 | 1C-1601(a)(5) | |
| Wildcard | $5,000 of unused homestead or burial exemption | 1C-1601(a)(2) |
| $500 of any personal property | Constitution Art. X sec. 1 |
Note: While this reference information is current as of August 2010, it may not reflect the most up-to-date exemption figures on official state of North Carolina bankruptcy court statutes.
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Go to Complete State of North Carolina bankruptcy exemptions laws.
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