North Carolina is an opt‑out state, meaning most bankruptcy filers use the North Carolina–specific exemptions (though certain federal protections like Social Security or ERISA‑qualified benefits still apply). Below is a summary of common NC exemptions. Always consult a licensed North Carolina bankruptcy attorney or the official statutes for the most up‑to‑date amounts and interpretations.
| Asset / Type of Property | Exemption Description | Amount / Limits | Law Section / Notes |
|---|---|---|---|
| Homestead | Real or personal property (including a cooperative or a burial plot) used as a residence. Property held as tenancy by the entirety is generally protected against debts owed by only one spouse. Joint filers who co‑own can each claim their exemptions. | Up to $35,000 per debtor (up to $70,000 if both spouses file and co‑own). Unmarried debtor 65+: up to $60,000 if the property was previously owned as TBE/JTWROS and the former co‑owner is deceased. | N.C.G.S. § 1C‑1601(a)(1). |
| Employee Group Life Policy or Proceeds | Fully exempt from creditor process. | No dollar limit | N.C.G.S. § 58‑58‑165. |
| Fraternal Benefit Society Benefits | Fully exempt from attachment/garnishment. | No dollar limit | N.C.G.S. § 58‑24‑85. |
| Property of Business Partnership | Specific partnership property is not subject to claims of an individual partner’s separate creditors. | Fully exempt as to separate creditors | N.C.G.S. § 59‑55. |
| Firefighters & Rescue Squad Workers | Pension benefits exempt. | Fully exempt | N.C.G.S. § 58‑86‑90. |
| Law Enforcement Officers | Supplemental Retirement Income Plan benefits exempt. | Fully exempt | N.C.G.S. § 143‑166.30(g). |
| Legislators | Legislative retirement benefits exempt. | Fully exempt | N.C.G.S. § 120‑4.29. |
| Municipal, City & County Employees | Local government retirement benefits exempt. | Fully exempt | N.C.G.S. § 128‑31. |
| Teachers & State Employees | TSERS benefits and SRIP benefits exempt. | Fully exempt | N.C.G.S. §§ 135‑9; 135‑95. |
| Household Goods, Clothing, Appliances, Books, Animals, Crops, Musical Instruments | Aggregate personal/household items used primarily by the debtor or a dependent. | $5,000 + $1,000 per dependent (max $4,000 additional). Potential total: $9,000. | N.C.G.S. § 1C‑1601(a)(4). Recent‑purchase rule applies (90 days). § 1C‑1601(d). |
| Burial Plot (Part of Homestead) | A burial plot for the debtor or a dependent qualifies under the homestead category. | Included within the homestead cap (no separate $10,000 stand‑alone exemption). | N.C.G.S. § 1C‑1601(a)(1). |
| Health Aids | Professionally prescribed health aids. | No limit | N.C.G.S. § 1C‑1601(a)(7). |
| Motor Vehicle | Equity in one vehicle. | $3,500 | N.C.G.S. § 1C‑1601(a)(3). Recent‑purchase rule applies (90 days). § 1C‑1601(d). |
| Personal Injury / Wrongful Death Recoveries | Compensation for personal injury (including private disability policies/annuities) or for the death of a person on whom the debtor depended for support; however, **not exempt** from claims for accident‑related funeral, legal, medical, dental, hospital, and health‑care charges. | No stated dollar limit in statute | N.C.G.S. § 1C‑1601(a)(8). |
| Public Assistance (e.g., AFDC/Work First, Special Adult Assistance) | Benefits are protected from assignment and legal process. | No limit | N.C.G.S. § 108A‑36. |
| Aid to the Blind | Monthly aid payments not subject to levy, execution, or garnishment. | No limit | N.C.G.S. § 111‑18. |
| Crime Victims’ Compensation | Awards protected from execution, subject to limited statutory exceptions. | No limit | N.C.G.S. § 15B‑17. |
| Unemployment Compensation | Generally exempt from garnishment/levy under NC law. | No limit | See Ch. 96; NC DOL guidance on garnishments. |
| Workers’ Compensation | Benefits/claims are exempt from creditors’ claims and taxes. | No limit | N.C.G.S. § 97‑21. |
| Implements, Books & Tools of Trade | Occupation‑related tools, books, and implements. | $2,000 | N.C.G.S. § 1C‑1601(a)(5). Recent‑purchase rule applies (90 days). § 1C‑1601(d). |
| Wages | Earned but unpaid wages (within 60 days) to the extent necessary for family support. | Needs‑based; no fixed cap | N.C.G.S. § 1‑362. |
| Wildcard | Up to $5,000 of any property, **but only from unused homestead** under § 1C‑1601(a)(1). Note: The separate $500 constitutional “any property” allowance is **not stackable** with statutory exemptions—you must elect either the Article 16 statutory scheme or the Article X constitutional scheme, not both. | Up to $5,000 (unused homestead only) | N.C.G.S. § 1C‑1601(a)(2); § 1C‑1602 (alternative/constitutional exemptions). |
North Carolina has its own exemption system and has opted out of the federal list in 11 U.S.C. § 522(d). In practice, that means if you’ve lived in North Carolina long enough to use NC exemptions (most filers who have been here at least two years do), you’ll protect property using state law plus any applicable non‑bankruptcy federal protections. The homestead protects equity in a residence (or a burial plot) and increases for an unmarried debtor age 65+ if the home was previously owned with a spouse as tenants by the entirety or joint tenants with rights of survivorship and the spouse has passed away. When spouses file jointly and co‑own, each spouse can claim a full set of exemptions, effectively doubling many caps.
The wildcard often fills gaps. If you don’t need the full homestead, you can move as much as $5,000 of the unused portion to “any property”—for example, to cover cash in the bank or extra equity in a vehicle. Be careful not to mix systems: the $500 “any property” allowance under the North Carolina Constitution is part of the constitutional exemption scheme; if you elect the constitutional route, you can’t also use the Article 16 statutory exemptions.
North Carolina also protects retirement accounts broadly (through state law and federal non‑bankruptcy law), workers’ compensation benefits in full, and many kinds of public benefits. Certain categories have special rules: household goods, tools of trade, vehicles, and wildcard claims are subject to a 90‑day purchase limitation—buying tangible items shortly before filing won’t make them exempt unless you can trace the purchase to exempt property with no new funds added. Finally, if only one spouse files and property is held as tenancy by the entirety, that property can be insulated from the filer’s separate creditors (but not from joint creditors), which can influence whether spouses file jointly or separately.
Exemptions are about strategy as much as statute. Start by listing everything you own, estimating fair‑market value (what it would sell for today), and subtracting valid liens to get your equity. Then map each item to the most appropriate exemption. Many people keep everything, but that outcome depends on using caps wisely—pairing the homestead with the wildcard, prioritizing essential household items, and preserving retirement funds instead of cashing them out.
Documentation matters. Keep purchase records and valuation support (photos, online comparables, appraisals for special items). If you plan to rely on the wildcard, confirm how much of your homestead you’ll actually use and preserve tracing if you’ve converted assets. Avoid last‑minute purchases of tangible personal property: the 90‑day rule can make those items non‑exempt. If you receive personal‑injury or wrongful‑death funds, know that while the recovery is exempt, medical and similar charges tied to the accident still have priority against those proceeds. If you live with a spouse and own your home together, consider both tenancy‑by‑the‑entirety protections and the potential benefits of a joint filing before you decide how to proceed.
The law is the same statewide, but the facts in every case are different. A brief consult with a North Carolina bankruptcy attorney can help you maximize protections, choose between chapter 7 and chapter 13, and avoid avoidable mistakes. If you’re ready to talk through your options, we’re happy to connect you with a local lawyer for a free, no‑obligation review.
This summary is for informational purposes only and does not constitute legal advice. Statutes may be amended, and courts can interpret them differently. Always consult a licensed North Carolina bankruptcy attorney or the official General Statutes for the most accurate, up‑to‑date amounts and interpretations relevant to your case.