Judgments and Bankrupcy: What are the State Exemptions for North Carolina?
Bankruptcy and judgment laws are complex. However, you can navigate them with a little legwork and knowledge. Exemptions are when you are entitled to keep certain property (like your home, wages, and furniture). The law says that no matter what, a creditor cannot force you to sell certain pieces of personal property. An important distinction between North Carolina and some other states is that you do not automatically have the right to these exemptions: you must fill in a claim form. If you do not fill in a claim form, creditors can sell your stuff from under you, plain and simple. You can obtain a copy of the “Notice of Right to Claim Exemptions” from the court (don’t trust the web: you may get outdated forms that will be invalid).
- Homestead Exemption: In North Carolina, you can keep up to $18,500 in equity value in your home, with no area limitation–meaning it doesn’t matter if you have one or one hundred acres (General Statutes of North Carolina, Annotated, §1C- 1601 and North Carolina Constitution, Article X). If you don’t have that much equity, you can use the difference to protect another asset (like a car, or furniture). Lawyers call this a wild card.
- Cars, cash value life insurance, and ERISA-qualified retirement plans and IRAs: $1500 per person.
It’s important to know that judges have leeway, and they can make reasonable exceptions: attend your court dates, and ask for whatever you think you can get. Inaction will lead to your creditors taking everything.
Related posts:
- Judgments: What are the State Exemptions for South Carolina?
- Bankruptcy and Judgments: What are the State Exemptions for South Dakota?
- Bankruptcy and Judgments: What are the State Exemptions for Tennessee?
- Bankruptcy and Judgments: What are the State Exemptions for Pennsylvania?
- Judgments: What are the State Exemptions for Utah?
