North Carolina Bankruptcy Laws & Exemptions Explained
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North Carolina Bankruptcy Laws

Know more about Filing for Bankruptcy Protection 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 provided a basic outline of the North Carolina bankruptcy laws. If you have specific questions, or want more details about the intricacies of the law, consider speaking with a local bankruptcy attorney.

You can also get a free bankruptcy case evaluation with a local attorney by completing the free form on this page. Complete it and we'll connect you with a North Carolina bankruptcy lawyer right away.

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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 may provide relief for multiple types of debt and both may 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.

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.


  • Up to $35,000 of real or personal property used as a residence.


  • 60 days’ earnings if needed for family support.


  • 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, may help people get control of their debts if they have some form of steady income.

Chapter 13 bankruptcy is designed to combine and order debts and stop collection with the help of the automatic stay. Regular payments are made to a court-appointed trustee that will go towards back debt. This repayment period may last 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.

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Talk to a North Carolina Bankruptcy Lawyer Today

You may still have questions regarding 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.

To get more in-depth answers on how filing bankruptcy may give you a fresh start, speak with a local attorney.

To get a free case evaluation with a local bankruptcy lawyer, complete the free bankruptcy case evaluation form on this page or call, toll free, 877-349-1309. We'll connect you with a sponsoring bankruptcy attorney near you in North Carolina right away.

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.

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