Gillespie & Murphy, P.A.
Call For A Free Consultation : (252) 558-1374

Understanding North Carolina bankruptcy exemptions

The bankruptcy process can be complex, yet beneficial, to those who choose to embark upon the journey. While it is quite possible that parties will have to forfeit certain assets during the process, it is possible to maintain other assets.

Filers can achieve this by utilizing certain bankruptcy exemptions that they qualify for. In North Carolina, there are a few important things to understand about this option.

State exemptions

While some states allow bankruptcy filers to choose between state or federal options, others make the decision for them. In North Carolina, bankruptcy filers must utilize the state's exemptions, with the option to implement certain federal exemptions along with state offerings. However, it is important to note that not all exemptions apply to every situation.

Common exemptions

Thankfully, the state offers several different exemption options. Some of the most common ones include:

  • Homestead or burial plot
  • Wages
  • Retirement and pension
  • Public benefits
  • Personal property
  • Motor vehicle

Several other exemptions apply in certain situations. For example, alimony and child support may be exempt from certain divorced parties. Married parties have an advantage, as each person can make separate exemptions. This practice is often referred to as "doubling."

Wildcard

For those who invoke the homestead or burial plot exemption but do not utilize the entire exemption amount on a property, the remaining amount may be used as a wildcard. In other words, filers may apply the remaining exemption to another property that they choose. The main stipulation is that the filer must have purchased the property more than 90 days before filing for bankruptcy.

Those who choose to utilize bankruptcy exemptions should take time to fully understand their capabilities. It may be beneficial to consult with knowledgeable professionals, as well as familiarize themselves with the law in full.

No Comments

Leave a comment
Comment Information
Attorneys Email Us For A Response

Need Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Four Different Locations To Serve You Schedule an appointment at our New Bern, Wilmington, Greenville, or Jacksonville office.

Wilmington Office
321 North Front Street
Wilmington, NC 28401

Phone: 252-558-1374
Fax: 910-254-3444
Wilmington Law Office Map

Gillespie & Murphy, P.A.
320 Middle Street
New Bern, NC 28560

Phone: 252-558-1374
Fax: 252-636-0625
New Bern Law Office Map

Jacksonville Office
200 Valencia Drive, Suite 119
Jacksonville, NC 28546

Phone: 252-558-1374
Jacksonville Law Office Map

Greenville Office
101 W 14th St, Suite 101
Greenville, NC 27834

Phone: 252-558-1374
Greenville Law Office Map