 |
|
North Carolina Bankruptcy Laws
Chapter 7 clients may have little property, but much or all of it may be protected under legal exemptions that prevent liquidation. In North Carolina, only state exemptions are allowed, which include:
Homestead |
Up to $35,000 (can be doubled); for those 65 or older, up to $65,000 |
Personal Property |
Motor vehicles up to $3,500; household goods, clothing, appliances, miscellaneous items; up to $5,000 for debtor plus $1,000 each for up to 4 dependents; health aids |
Pensions |
Tax exempt retirement accounts |
Tools of the Trade |
Up to $2,000 |
Insurance |
Some types of life insurance proceeds |
There are numerous decisions to be made, even before the bankruptcy petition is filed. With the help of their bankruptcy attorneys, clients can make those decisions wisely and be prepared for the process that follows:
- Attending credit counseling before filing their bankruptcy petition
- Submitting to the administration and oversight of the bankruptcy trustee appointed by the court
- The trustee determines if the client is eligible for Chapter 7
- If they have any property subject to liquidation
- Which debts are eligible to be discharged, or erased
- Attending a required 341 meeting, so named because of its bankruptcy code section, with the trustee for questions about their assets and obligations, which they must answer under oath. Creditors may also attend and ask any questions they have
- Chapter 13 clients must have their repayment plan approved by the bankruptcy judge
- Attending debt education courses
- For Chapter 7 clients, discharge of all eligible debts
- For Chapter 13 clients, commencement of their repayment plan, at the end of which any of their eligible debts may be discharged
|
|
