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What are the North Carolina exemptions?

**If a debtor has lived in North Carolina for less than 2 years, then he/she may not be eligible to claim the North Carolina exemptions and may be required to claim the federal bankruptcy exemptions or the exemptions of some other state.**

  • Homestead. $35,000.00 in value in real or personal property used as a residence or burial plot. A widow or widower over the age of 65 may be entitled to an enhanced exemption.
  • Motor vehicle. $3,500.
  • Household goods. $5,000 plus $1,000 for each dependent.
  • Tools of trade. $2,000.
  • Life insurance policies where a spouse or child is the beneficiary.
  • Professionally prescribed health aids.
  • Personal injury compensation is exempted except for related legal, health or funeral expenses.
  • Individual retirement plans. In addition to the IRA exemption, most 401k plans and other ERISA qualified plans are excluded from the bankruptcy estate.
  • 529 plans not to exceed $25,000. If funds were contributed within 12 months of filing then the contributions must have been made in the ordinary course of the debtor’s financial affairs and must have been consistent with the debtor’s past pattern of contributions.
  • Alimony, support, etc. to the extent that the funds are necessary for the support of the debtor and/or the debtor’s dependents.
  • Tenancy by entirety. Real property held as entire ties is exempted in the absence of joint, unsecured creditors.
  • Wages. Wages earned in the 60 days prior to bankruptcy are exempted if necessary for the support of the debtor and/or the debtor’s dependants.
  • Recent purchases. Personal property purchased in the 90 days prior to filing may not necessarily be exempted.
  • Other exemptions. The above list is not comprehensive. There are a number of other very significant exemptions available under federal and state law.

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