NC Bankruptcy Exemptions
The following is a list of commonly used North Carolina exemptions. This is not a complete list and should not be relied upon until speaking with an attorney about what exemptions are available for you to claim as you must have been a North Carolina resident for the last two (2) years to utilize North Carolina Bankruptcy exemptions. If you have not been a North Carolina resident for the prior two (2) years, then you may be able to choose between Federal exemptions or those of another State where you previously lived.
The list provided below is also the same exemptions to be used by those served with a notice of rights to claim exemptions in North Carolina before collection on a judgment. It also important to note that NC has a 4 year look-back on fraudulent conveyances so you can't simply transfer things out of your name to protect items from creditors.
NC Judgment exemptions
- Residence: $35,000.00 equity per individual debtor, $70,000.00 for joint debtors (Equity= Current value minus loan payoff)
- Automobile: $3,500.00 equity
- Wildcard: $5,000.00 per debtor (Can be stacked with automobile exemption)
- Household Goods: $5,000.00 per debtor
- Tools of the trade: $2,000.00
- Life Insurance: often 100% exempt
- IRA: often 100% exempt
- Pension or 401K: often 100% exempt
- Personal Injury proceeds: often 100% exempt
- Earnings in the last 60 days: often 100% exempt if necessary for support of family
*See the NC Exemption statute for a more complete list.