North Carolina laws allow a person to protect certain property from creditors. Generally speaking, exemptions in bankruptcy define what property a person gets to keep in a Chapter 7 bankruptcy case. In a Chapter 13, exemptions are important as well because they help determine how much money needs to be paid to unsecured creditors.
Currently, the most commonly used exemptions in North Carolina are as follows (all of these amounts double in a jointly filed case, and equity is defined as the value of your property minus any loans against that property):
Homestead ($35,000 per spouse)
Car ($3,500 per spouse)
Household Goods ($5,000 per spouse)
Wages (362-1, 2 months salary per spouse)
Wildcard ($5,000 per spouse)
Tools of Trade ($2,000 per spouse)
Retirement Accounts (Unlimited)
These are just a few examples, and other exemptions exist. As you can see, these exemptions can protect $100,000 or more in property. Another key point is that the value of your property considered is what you can sell it for, not retail.
Almost as importantly, these exemptions can protect your property from creditors whether you file a bankruptcy case or not. Eliminating debt through bankruptcy makes a lot of sense for many clients’ futures. However, if a case is not appropriate for you, I would still be happy to inform those of you near Asheville in Western North Carolina about your rights during a free initial consultation.
*The information contained on this website is not intended and does not constitute the providing of any legal advice or any legal opinions or services to any user thereof. The information available on or through this web page is not intended and shall not be used as a substitute for the advice and consultation provided by an attorney. Any factual examples used to illustrate concepts are hypothetical and do not depict actual events or real persons.