Judgment Collection//Bankruptcy—Exempt Property

North Carolina allows you keep certain property when you file a petition for Chapter 7 or Chapter 13 relief.  This property is called “exempt property”, and it is your responsibility to claim the “exemptions” you are entitled to.  Here is brief list of the North Carolina exemptions that each debtor can claim.  NOTE:  The property amounts are doubled for a married couple. 

Residence:                $10,000.00 of equity in the debtor’s residence or in the debtor’s property that a dependent uses as a residence (referred to as the “homestead exemption”).

Wildcard:                    $3,500.00  interest in any property (only available when either the homestead exemption claimed is less than $3,500.00).

Motor Vehicle:           $1,500.00  of equity in a motor vehicle.

Household Goods and Furnishings, Clothing:  $3,500.00 total value for household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor, (plus an additional $750.00 per dependent).

Tools of the Trade:  $750.00 in implements, professional books, or tools of the trade.

Retirement Plans:     Individual retirement plans as defined by the Internal Revenue Code.

NOTE:  For purposes of calculating the value of an exemption the term “equity” is the difference between the fair market value of the property less the amount of liens/mortgages on the property.

The information regarding exemptions has been taken from North Carolina General Statute section 1C-1601.  The exemption information listed above is intended to be a brief summary of the North Carolina exemptions and is not intended to be a complete and detailed list of the exemptions and is for informational purposes only.

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