North Carolina Bankruptcy Exemptions
What can you keep?
How Do Bankruptcy Exemptions Work?
Bankruptcy exemptions determine which of your assets a creditor can claim when you file for bankruptcy. Exemptions are designed to protect certain necessary items or items of sentimental or emotional value so that you can keep them as part of your fresh start.
Different states have different exemption laws, and some states also allow individuals to choose between state exemptions and federal exemptions.
Exemptions can be used to protect different types of assets, such as cash, real estate, and personal property.
Bankruptcy Exemptions in North Carolina
In North Carolina, for example, debtors are allowed to keep up to $30,000 in equity for their primary residence. This means that a debtor can keep the property if its value is less than or equal to $30,000. If the home is worth more than $30,000, then creditors can take steps to recover the excess amount.
In addition, the state of North Carolina provides exemptions for wages up to 75% of disposable earnings, as well as motor vehicles with a value of up to $3,500.
Exemptions also vary depending on the type of bankruptcy you file. For example, under Chapter 7 bankruptcy, debtors are allowed to keep more of their assets than if they filed under Chapter 13.
It’s important to understand the exemptions in your state before filing for bankruptcy so that you can make sure you’re able to keep as much of your property as possible. Bankruptcy attorneys are a great resource for learning more about bankruptcy exemptions and other aspects of the process. They can also provide guidance and help you understand how the exemptions work in your particular case.
By understanding how exemptions work, debtors can make the most of their bankruptcy experience and get a fresh start on their finances.
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