North Carolina Bankruptcy Laws
The state of North Carolina is divided into three bankruptcy districts: North Carolina Middle District Court, North Carolina Western District Court and North Carolina Eastern District Court. These courts serve the entire state of North Carolina . The protection is extended once you've completed the mandatory credit counseling, required under the new bankruptcy laws, and filed your case with the Court. Until then, credit card debt creditors can still continue to collect on the debts, and your lender can still proceed with the foreclosure if you're behind on your mortgage.
North Carolina Bankruptcy Exemptions
According to the Lawyers.com website, under North Carolina bankruptcy laws, you can generally keep:
- Household furnishings and goods, clothes, appliances, books, animals, crops and musical instruments, up to a total value of $5,000 for you (the debtor), plus an additional $1,000 for each of your dependents, up to a total value of $4,000 for your dependents, but not including any assets purchased less than 90 days before you filed for bankruptcy
- Your interest in any property, but not including any assets purchased less than 90 days before you filed for bankruptcy, up to a total value of $3,500, less any amount of the homestead exemption you've used
- Professional books and tools of your trade, up to $2,000 in total value, but not including any assets you bought less than 90 days before you filed for bankruptcy
- Life insurance proceeds
- Any professionally prescribed health aids
- Compensation for personal injury or death
- Individual retirement accounts and annuities
- Public employee pensions
- AFDC, special adult assistance and aid to the blind
- Crime victims', unemployment and workers' compensation
- Property of a business partnership
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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