North Carolina Bankruptcy Exemptions 2020

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Written by Upsolve Team.  
Updated October 24, 2020

In a Nutshell

It's important to understand what the exemptions for North Carolina are and how they're most often used in a bankruptcy case.

How Do Exemptions Work?

When you file for Chapter 7 bankruptcy, one of the biggest questions is whether or not you will be able to keep your property.

That depends on which property exemptions you can use on your bankruptcy forms. They are called exemptions because they “exempt” -- or “excuse” -- certain property from being taken. In most cases, exemptions protect most day-to-day items that you own, unless you have expensive property like a house or a car.

Certain exemptions protect entire categories of property like retirements accounts, regardless of value. Other exemptions only protect specific property like a vehicle up to a certain value.

If you're looking for a deep understanding of bankruptcy exemptions, read this article.

Does North Carolina allow federal exemptions?

North Carolina does not recognize the federal exemptions.

Every state has its own set of property exemptions. And some states also allow you choose between their exemptions and a set of federal bankruptcy exemptions. When they do, they will generally let you to choose the system that is the best fit for you. Although some states allow you to use the federal bankruptcy exemptions, others do not.

North Carolina Exemptions

11 U.S.C. § 522(b)(3)(C)

Most people use 11 U.S.C. § 522(b)(3)(C) to cover tax exempt retirement accounts. For single debtors filing, it has no coverage limit.

5 U.S.C. §§ 8437(e)(g), 11 U.S.C. § 541(c)(2)

Most people use 5 U.S.C. §§ 8437(e)(g), 11 U.S.C. § 541(c)(2) to cover thrift savings plan. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 1-362

Most people use N.C. Gen. Stat. § 1-362 to cover unpaid wages - earned, unpaid wages received 60 days prior. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 111-18

Most people use N.C. Gen. Stat. § 111-18 to cover aid to blind. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 120-4.29

Most people use N.C. Gen. Stat. § 120-4.29 to cover legislators pension. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 128-31

Most people use N.C. Gen. Stat. § 128-31 to cover municipal, city and county employees pension. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 135-111

Most people use N.C. Gen. Stat. § 135-111 to cover disability income. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 135-9

Most people use N.C. Gen. Stat. § 135-9 to cover teacher retirement. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 143-166.30 (g)

Most people use N.C. Gen. Stat. § 143-166.30 (g) to cover law enforcement officers retirement. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 15B-17

Most people use N.C. Gen. Stat. § 15B-17 to cover crime victims' compensation. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 1C-1601 (a)(10)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(10) to cover 529 college savings accounts. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 1C-1601 (a)(12)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(12) to cover alimony, maintanance, child support. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 1C-1601 (a)(3)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(3) to cover motor vehicles. For single debtors filing, it has a coverage limit of $3,500.

N.C. Gen. Stat. § 1C-1601 (a)(4); N.C. Gen. Stat. § 1C-1601 (d)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(4); N.C. Gen. Stat. § 1C-1601 (d) to cover household goods, furnishings, appliances . books. musical instruments. clothes. animals. crops.. For single debtors filing, it has a coverage limit of $5,000.

N.C. Gen. Stat. § 1C-1601 (a)(5)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(5) to cover tools of trades. For single debtors filing, it has a coverage limit of $2,000.

N.C. Gen. Stat. § 1C-1601 (a)(6)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(6) to cover life insurance (spouse or children). For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 1C-1601 (a)(7)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(7) to cover health aids. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 1C-1601 (a)(8)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(8) to cover personal injury. For single debtors filing, it has a coverage limit of $24,060.

N.C. Gen. Stat. § 1C-1601 (a)(9)

Most people use N.C. Gen. Stat. § 1C-1601 (a)(9) to cover iras, roth iras, inherited iras. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 58-24-85

Most people use N.C. Gen. Stat. § 58-24-85 to cover fraternal benefits. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 58-58-165

Most people use N.C. Gen. Stat. § 58-58-165 to cover life insurance (group). For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 58-86-90

Most people use N.C. Gen. Stat. § 58-86-90 to cover firefighters and rescue squad workers. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 59-55

Most people use N.C. Gen. Stat. § 59-55 to cover partnership property. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 96-17

Most people use N.C. Gen. Stat. § 96-17 to cover unemployment compensation. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 97-21

Most people use N.C. Gen. Stat. § 97-21 to cover workers' compensation. For single debtors filing, it has no coverage limit.

N.C. Gen. Stat. § 1C-1601 (a)(2); N.C. Const. Art. X § 1

Most people use N.C. Gen. Stat. § 1C-1601 (a)(2); N.C. Const. Art. X § 1 to cover wildcard. For single debtors filing, it has a coverage limit of $5,500.

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