North Carolina Homestead Exemption

The Law Office of
Susanne M. Robicsek

North Carolina Bankruptcy Homestead Exemption

NC Bankruptcy Lawyer in Charlotte North Carolina for Chapter 7 / Chapter 13

Exemption laws protect some property from being taken by creditors if a person is sued.  They vary from state to state. 

Bankruptcy laws may use Federal exemptions or the same exemption laws to protect property of debtors.  Since these laws  vary from state to state, what laws protect a banruptcy debtor will be determined by where the individual filing for bankruptcy lives and has lived for the few years before they file their bankruptcy case. 

North Carolina exemptions apply to someone who files bankruptcy in the state of North Carolina, if they have lived in North Carolina for two years or longer. If they have lived in North Carolina less than two years, then either Federal Exemptions of the exemptions of a former state apply.  The 2005 changes made if very confusing for people who haven't lived in their state for at least two years, so you should have an experienced lawyer advise you about your exemptions.

North Carolina Homestead Exemption:  The North Carolina Laws allow each resident to exempt (protect or withhold) from creditors, up to $35,000.00 equity in their residence, or in the residence of their dependent.

If the debtor does not have a residence or does not need the entire $35,000.00 exemption in the residence, they can use up to $5,000.00 as a wildcard exemption in any type of property to the extent it is not used for the residence.

You can think of the homestead exemption in North Carolina a little differently and say that North Carolina has a homestead exemption per person of $30,000.00 to use exclusively on the residence, that can be combined with the $5,000.00 wildcard for a total of $35,000.00 residential homestead exemption.

For example, if a resident claims $25,000.00 equity in their residence as exempt, they would still have up to $5,000.00 wildcard to use elsewhere. If they claimed $32,000.00 equity in their residence as exempt, they would still have $3,000.00 wildcard to use for some other property.

Additionally, some debtors who are over 65 years in age may qualify to exempt up to $60,000.00 as their residence, depending on whether or not the property was previously co-owned with a spouse or joint tenant who is now deceased.  (See an attorney to discuss this since it is very specific on facts.)

If a debtor in bankruptcy has lived in North Carolina for at least two years, this exemption would likely apply to them in either a Chapter 7, Chapter 11 or Chapter 13 case.

To learn about NC exemptions and how they apply to you, please consult an attorney licensed in the state of North Carolina, and to know what exemptions apply in bankruptcy cases, consult an experienced bankruptcy attorney. Not understanding the laws could have serious consequences.

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DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. Personal opinions may also be expressed. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.

The Law Office of Susanne M. Robicsek is
a Federally Designated Debt Relief Agency
under the Bankruptcy Code.
I file bankruptcy cases for people in financial need,
and have been doing so since 1989.

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