North Carolina Bankruptcy Exemptions

This list of exemptions updated August 2007. All law references are to General Statutes of North Carolina unless otherwise noted. Federal bankruptcy exemptions are not available in North Carolina.

Homestead

1C-1601 - Real or personal property used as a residence, including co-op, up to $18,500; up to $5,000 of unused portion of homestead may be applied to any property. Tenancies by the entirety exempt without limit as to debts of one spouse [In re Crouch, 33 B.R. 271 (E.D. N.C. 1983)].

Personal Property

1C-1601 - Motor vehicle up to $3,500; health aids; clothing, household goods, furnishings, appliances, books, animals, musical instruments and crops up to $5,000 total, plus additional $1,000 per dependent up to $4,000 total (all property must have been purchased at least 90 days before filing); personal injury and wrongful death recoveries for a person you depended upon; college savings accounts that were established under 26 U.S.C. § 529 up to $25,000. There are some contributions within the prior year that are excluded.

1C-1601 - Burial plot up to $18,500, in lieu of homestead.

1C-1601 - $5,000 of any property, less any amount claimed for homestead or burial plot.

Wages

1-362 - Earned but unpaid wages received 6O days before filing for bankruptcy.

Pensions

11 U.S.C. § 522 - Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person.

1C-1601 - Retirement benefits from another state to the extent that they are exempt in that state; Roth IRAs and IRAs.

58-86-90 - Firefighters and rescue squad workers.

120-4.29 - Legislators.

128-31 - Municipal, city, and county employees.

135-9 & 135-95 - Teachers and state employees.

143-166.30 - Law enforcement officers.

Public Benefits

15B-17 - Crime victims' compensation.

96-17 – Unemployment compensation.

97-21 - Workers' compensation.

108A-36 – Public assistance under work first program.

111-18 - Aid to blind.

Tools of Trade

1C-1601 - Tools, books, and implements of trade up to $2,000.

Insurance

1C-1601 - Life insurance for children or a spouse.

58-58-165 - Employee group life policy or proceeds.

58-24-85 - Fraternal benefit society benefits.

Miscellaneous

1C-1601 - Alimony and child support needed for support.

30-15 - Support that a surviving spouse has recieved for 1 year up to $10,000.

59-55 - Business partnership property.

Other - Add any applicable Federal Nonbankruptcy Exemptions

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