Bankruptcy Exemptions

When you file Chapter 7 or Chapter 13 bankruptcy in North Carolina, state exemptions determine what property you may keep. Many federal exemptions do not apply in North Carolina. It is critical that you work with an experienced attorney who is prepared and willing to put in the work to maximize your exemptions in a properly filed bankruptcy.

North Carolina exemptions are not as generous as the federal exemptions in many ways. Without the guidance of a dedicated bankruptcy attorney, you could be putting your property and other assets at serious risk.

At Sigmon & Henderson, PLLC, we ensure that our clients take full advantage of the state exemptions in bankruptcy along with federal "nonbankruptcy" exemptions necessary to protect some retirement benefits, survivors benefits, death and disability benefits, and other miscellaneous assets. In some cases, military, government, civil service, railroad and other workers are eligible for additional protections.

North Carolina's Homestead Exemption

The homestead exemption in North Carolina is of particular interest to our clients. Real or personal properties used as residences, including co-ops, are exempt up to $35,000.

One thing most people do not know is that if both you and your spouse file bankruptcy (joint filing), the exemption amount is doubled. This protects the equity in your home. If you are underwater on your mortgage (your home is worth less than what you owe on the mortgage), you will not need this exemption.

Other bankruptcy exemptions in North Carolina include:

  • Personal property such as motor vehicles, health aids, college savings accounts, animals, crops, musical instruments and other household goods
  • Wages earned but unpaid 60 days before filing for bankruptcy
  • Pensions, including tax-exempt retirement accounts, IRAs and Roth IRAs
  • Public benefits such as public assistance, workers' compensation and unemployment compensation
  • Tools of the trade, including implements and books
  • Insurance, including life insurance, employee group life policies or proceeds, and fraternal society benefits
  • Alimony, child support and separate maintenance
  • Business partnership property

Numerous other aspects of the law apply to exemptions. You must speak with a highly qualified bankruptcy attorney who can personally advise you and guide you through the process before filing for bankruptcy or pursuing any other type of debt relief.

Contact Our Proven Bankruptcy Lawyers Today

Call us at 704-269-6374 or email us to schedule a free initial consultation with a detail-oriented Gastonia bankruptcy exemptions lawyer.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.