North Carolina Bankruptcy Laws
What to know about Chapter 7 and Chapter 13 bankruptcy in North Carolina
Before you file bankruptcy in North Carolina, learn about all of your options, and make sure you have a clear understanding of how the state’s bankruptcy laws could affect you.
That’s why we’ve provide a basic outline of the North Carolina bankruptcy laws. If you have specific questions, or want more details about the intricacies of the law, speak with a local bankruptcy attorney.
To get in touch with a local bankruptcy lawyer, simply complete the free case evaluation form on this page and we’ll connect you with a lawyer in North Carolina near you.
North Carolina Bankruptcy Law
The North Carolina bankruptcy code provides two paths for filing personal bankruptcy. Chapter 7 and Chapter 13 bankruptcy are very similar in that both can provide relief for multiple types of debt and both can provide broad protections against lawsuits, foreclosure and repossession.
However, you may only be well suited to take advantage of one form or the other.
Chapter 7 bankruptcy might be a good fit for people struggling with large amounts of credit card debt or medical bills, who have little income and don’t own their home.
Even if only some of the above factors apply, Chapter 7 bankruptcy could still result in a complete discharge of most debt.
Be aware that, in some cases, there is a liquidation sale of property involved with filing. These cases are rare, and North Carolina law protects much of your property. We’ve provided a list of Chapter 7 exemptions in North Carolina, but to get a better idea of exactly how your property could be affected, speak with a local bankruptcy attorney.
Homestead
- Up to $18,500 of real or personal property used as a residence.
Wages
- 60 days’ earnings if needed for family support.
Automobiles
- One motor vehicle worth up to $3,500.
Personal Property
- Up to $5,000 worth of any property, minus amount claimed under homestead exemption.
- Up to $5,000 plus $1,000 of property for each of your dependents up to $4,000 worth of household furnishings, household goods, clothing, appliances, books, animals, crops or musical instruments.
- Up to $2,000 worth of implements, professional books and trade tools.
Chapter 13 bankruptcy, on the other hand, can help people get control of their debts if they have some form of steady income.
While they may be juggling the needs of multiple creditors and facing steep late fees and fines, Chapter 13 bankruptcy combines and orders debts and stops collection. Regular payments are made to a court-appointed trustee that will go towards back debt. This repayment period may lat 3-5 years, and at the end all debts should be settled.
Chapter 13 bankruptcy also offers more broad protections for homes, cars and other property than Chapter 7.
Talk to a North Carolina Bankruptcy Lawyer Today
You may still have questions regarding Chapter 7 and Chapter 13 bankruptcy in North Carolina. It’s also true that each bankruptcy case is different, and yours will have its own special needs for protection and relief.
For a close look at how bankruptcy can help eliminate your debt, meet with a local bankruptcy lawyer.
To speak with a local North Carolina bankruptcy attorney call, toll free, 877-349-1309, or complete the free case review form on this page and we’ll connect you shortly.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.
