NORTH CAROLINA BANKRUPTCY LAW
North Carolina Bankruptcy: Attorneys, Statistics, Exemptions and Courts.
North Carolina Bankruptcy Statistics: In 2009, in North Carolina, 27,740 bankruptcies were filed. Business bankruptcies accounted for 1,367 or less than 5% of the total and personal bankruptcies accounted for 26, 373 or over 95% of the total.
North Carolina State Bankruptcy Exemptions:
Homestead
The residence of the debtor is exempt from bankruptcy at a value not exceeding $35,000 for a single person and $70,000 for a married couple. The residence is included in this exemption whether it is real property (house with land) or personal property (mobile home). A single debtor over the age of 65 may exempt up to $65,000.
North Carolina recognizes a type of property ownership called a “tenancy by the entirety.” This type of ownership is available only to married couples. If the couple owns their residence as a “tenancy by the entirety,” the residence is wholly exempt against the debt of only one of the spouses.
Personal Property
In North Carolina, health aids and damages recovered in wrongful death or personal injury claims are wholly exempt.
$1,000 can be added as an exemption for each dependent of the debtor up to four additional dependents totaling to $4000. Also, to be exempt, the item must be purchased 90 days before filing bankruptcy. The following items are exempt for a total of $5,500:
College savings accounts that qualify under provision 529 of the federal tax code are exempt up to $25,000. The last 12 months of contributions before filing are not included in the exemption, if the contributions exceed those generally made to the account.
A single Motor vehicle is exempt for up to $3500.
Insurance
The following insurance types are entirely exempt when filing bankruptcy in North Carolina:
Pensions
In a North Carolina, bankruptcy pensions from a different state are exempt to the extent that they would be exempt in the original state.
IRAs and Roth IRAs are also exempt.
The following individuals’ and their survivors’ pensions are entirely exempt:
Public benefits
The following benefits are entirely exempt when filing for bankruptcy in North Carolina:
Tools of the trade
Books, instruments, and tools are exempt for a total of $2,000 when filing bankruptcy in North Carolina.
Miscellaneous
Alimony, child support, and separation maintenance are exempt from bankruptcy to the extent that the funds are necessary for the support of the debtor and the debtor’s dependents.
Financial support received by a surviving spouse from the estate of the deceased spouse is also exempt for up to one year and $20,000.
Wages
Earned but unpaid wages, received 60 days before filing for bankruptcy are exempt to the extent that they are needed for support.
Wildcard
When filing for bankruptcy in North Carolina, the debtor can exempt an addition $500 on any property, and use up to $5000 of the unused homestead exemption on any property.
Federal Bankruptcy Exemptions: No
North Carolina Bankruptcy Courts:
United States Bankruptcy Court for the Eastern District of North Carolina has jurisdiction over the following counties: Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Edgecombe, Franklin, Gates, Granville, Greene, Halifax, Harnett, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northhampton, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Robeson, Sampson, Tyrrell, Vance, Wake, Warren, Washington, Wayne, Wilson.
United States Bankruptcy Court for the Middle District of North Carolina has jurisdiction over the following counties: Alamance, Cabburus, Caswell, Chatham, Davidson, Davie, Durham, Forsyth, Guilford, Hoke, Lee, Montgomery, Moore, Orange, Person, Randolph, Richmond, Rockingham, Rowan, Scotland, Stanley, Stokes, Surry, Yadkin.
United States Bankruptcy Court for the Western District of North Carolina has jurisdiction over the following counties: Alexander, Allegheny, Anson, Ashe, Avery, Burncombe, Burke, Caldwell, Catawba, Charokee, Clay, Gaston, Graham, Haywood, Henderson, Iredell, Jackson, Lincoln, Macon, Madison, McDowell, Mecklenburg, Mithchell, Polk, Rutherford, Swain, Transylvania, Union, Watauga, Wilkes, Yancey.
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