What are Bankruptcy Exemptions?

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Bankruptcy Exemptions in North Carolina

Charlotte Bankruptcy Lawyers

When someone files for bankruptcy, they are allowed to claim certain property as protected or " exempt".

Property that you claim as exempt cannot then be sold off to repay your creditors when you file bankruptcy.

There are different types of exemptions which apply for different types of property.

There is a homestead exemption that you can use to protect your home, motor vehicle exemptions to protect your vehicle(s), and personal property exemptions to protect your other belongings.

Exemptions primarily come into play when dealing with Chapter 7 bankruptcies. This is because when you file a Chapter 7 under the U.S. bankruptcy code, the trustee can look to sell any unexempt property to repay your creditors. This is one of the reasons why it is so important to have an experienced bankruptcy attorney handling your case.

Our experienced bankruptcy attorneys know all the available exemptions you can use to protect and keep your property.

Over 95% of our clients are able to keep all of their property when filing for Chapter 7 bankruptcy.

When filing for Chapter 13 bankruptcy, the trustee does not look to sell any property that is not covered by exemptions.

However, exemptions are still important in Chapter 13's because if you have property that isn't covered by exemptions, it could necessitate your needing to repay your creditors a bigger percentage through your Chapter 13 plan. This is another reason why you need an experienced bankruptcy attorney preparing your case.

We can help you better understand bankruptcy exemptions. Schedule your complimentary case evaluation today.

Our Charlotte bankruptcy attorneys can help you gain a clear understanding of how bankruptcy exemptions may affect your particular Chapter 7 filing. Every debtor will have different amounts of property and assets to address, and we can review your particular situation against state and federal law to determine the best approach to protect your property.

Some of the basic exemptions under North Carolina law:

  • Homestead exemption: $35,000 (individual filer); $70,000.00 (joint filers); $60,000.00 (widower and property held as tenancy by the entirety or as jointly with right of survivorship.
  • Personal Property: $5,000.00 per debtor + $1,000.00 per debtor for each dependent ($4,000.00 is the maximum allowed for dependents)
  • Disability or illness insurance benefits
  • Life insurance benefits
  • Health aids
  • Personal injury or wrongful death recoveries
  • Worker's compensation benefits
  • Social Security benefits
  • Tools of the trade: $2,000
  • Motor vehicle: up to $3,500 + any unused homestead exemption + $500 wildcard.

Ready to begin? Call Saffa Law Group at (704) 710-8182 today.

When you have all of the information about what property you may be able to keep, you can make a better choice about filing. To talk about your case and your unique questions and concerns, please call our offices at your earliest convenience. Our lawyers are thoroughly committed to providing honest, straightforward guidance when you need it most. We help debtors throughout Charlotte and the surrounding areas.

Contact our firm to discuss your matter with our team.

We serve clients throughout the City of Charlotte, Town of Cornelius, Town of Davidson, Town of Huntersville, Town of Matthews, Town of Mint Hill, Town of Pineville, Town of Stallings, Buford, Charlotte, Goose Creek, Hembry Bridge, Indian Trail, JAARS, Jackson, Lake Park, Lanes Creek, Marshville, Marvin, Matthews, Mineral Springs, Mint Hill, Monroe, New Salem, Sandy Ridge, Stallings, Unionville, Vance, Waxhaw, Weddington, Wesley Chapel, Wingate, Concord, Harrisburg, Kannapolis, Midland, and Mt. Pleasant.