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

Bankruptcy laws use the same exemption laws to protect property of debtors, and 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.

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.

North Carolina Homestead Exemption:  The North Carolina Laws allow each resident to exempt (protect or withhold) from creditors, up to $35,000.00 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.