North Carolina State Bankruptcy Laws


What Are The North Carolina Bankruptcy Exemptions?

North CarolinaNorth Carolina law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it's wise to consult with a North Carolina bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in North Carolina. In general, the major North Carolina bankruptcy exemptions include:

General North CarolinaExemptions
Real Estate (the Homestead Exemption)
Up to $10,000 of equity in real property or personal property used as a residence can be protected.
Automobiles
Up to $1,500 of equity in one motor vehicle can be protected.
Other Property
The debtor's aggregate interest in any property, not to exceed $3,500 less any amount claimed under the homestead exemption; $3,500 in value for the debtor plus $750 for each dependent of the debtor, not to exceed $3,000 total for dependents, in household furnishings, household goods, clothing, appliances, books, animals, crops, or musical instruments; the debtor's aggregate interest, not to exceed $750 in value, in any implements, professional books, or tools of the trade.
View the complete list of North Carolina bankruptcy exemptions

Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.

Which state's exemption laws apply in your bankruptcy?

North CarolinaGenerally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.

If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.

If application of the preceding general rules renders you ineligible for exemptions under any state's laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.

Is North Carolina a Community Property State?

No, North Carolina is not a community property state. Because it is not a community property state, you will be responsible for your spouse's debts only if you voluntarily assumed those debts by, for example, co-signing on a loan given to your spouse. In a non-community property state, one spouse can file for bankruptcy and be eligible to eliminate all of their unsecured debts without the involvement of the other spouse.

How did your senator vote on the new bankruptcy laws?

Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?

Burr (R-NC) — YEA
Dole (R-NC) — YEA

North Carolina Bankruptcy Court Locations:

U.S. Bankruptcy Court
1760-A Parkwood Blvd
Wilson, NC 27893
(252) 237-0248

U.S. Bankruptcy Court
P.O. Box 1441
300 Fayetteville Street, Second Floor
Raleigh, N.C. 27602-1441
(919) 856-4752

101 S. Edgeworth Street
Greensboro, NC 27401
(336) 333-5647

226 S. Liberty Street
Winston-Salem, NC 27101
(336) 631-5340

Charles Jonas Federal Building
401 West Trade Street, Room 111
Charlotte, NC 28202
(704) 350-7500

U.S. Bankruptcy Court
Western District of North Carolina
Asheville Division
100 Otis Street, Room 112
Asheville, NC 28801-2611
Phone (828) 771-7300

Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.

Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.

North Carolina Bankruptcy Attorney Locations:

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