Are you considering filing for Chapter 7 or Chapter 13 bankruptcy in North Carolina? Although much of bankruptcy is governed by federal law, some bankruptcy-related information and law is specific to your state.
Below you’ll find North Carolina-specific information on filing for bankruptcy as well as articles on the various North Carolina bankruptcy exemptions. And for in-depth information on bankruptcy law and procedures, visit Nolo’s Bankruptcy Center.
Filing for Bankruptcy in North Carolina (NC)
In this complete guide to filing for bankruptcy in North Carolina, you’ll learn about the differences between Chapters 7 and 13, debts you can eliminate or "discharge,” property you can keep using North Carolina bankruptcy exemption laws, and bankruptcy qualification requirements. You'll also learn how to organize and navigate your North Carolina bankruptcy case using checklists, a link to a DIY bankruptcy quiz, and other helpful resources.
The North Carolina Homestead Exemption
Learn how much home equity you can protect using the homestead exemption in a North Carolina bankruptcy and other requirements you must meet to keep a home in bankruptcy. All bankruptcy filers can keep a house if the homestead exemption protects all home equity. The Chapter 7 bankruptcy trustee will sell the home if the homestead exemption doesn't fully protect the home's equity. Chapter 13 filers can keep a home that isn't fully covered by the homestead exemption if they can afford to pay creditors the uncovered amount through the bankruptcy plan.
North Carolina Bankruptcy Exemptions
North Carolina bankruptcy exemptions protect property from bankruptcy creditors, including the things you’ll need to maintain a home and job. But you might not be able to keep everything you own. In Chapter 7, you only keep property covered by North Carolina bankruptcy exemptions. In Chapter 13, you keep everything you own but pay creditors for any nonexempt property. Learning about bankruptcy exemptions before filing will help you prevent unexpected property losses in a North Carolina bankruptcy.