Bankruptcy Exemptions in North Carolina
What property you can keep in bankruptcy in North Carolina: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: North Carolina has opted out of the federal bankruptcy exemptions. The federal exemption list in 11 U.S.C. 522(d) does not apply to North Carolina residents; they use the exemptions in North Carolina law instead. N.C. Gen. Stat. § 1C-1601(f); § 1C-1602
| State or federal exemptions | North Carolina has opted out of the federal bankruptcy exemptions. The federal exemption list in 11 U.S.C. 522(d) does not apply to North Carolina residents; they use the exemptions in North Carolina law instead. Within state law, a filer may choose the much smaller exemptions in Article X of the North Carolina Constitution ($1,000 in a home and $500 in personal property) instead of the G.S. 1C-1601 list. Alternative constitutional exemptions: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_1C/GS_1C-1602.html |
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| Homestead exemption | Up to $35,000 in value in real or personal property that the filer or a dependent uses as a residence (including an interest in a housing cooperative), or in a burial plot. An unmarried filer age 65 or older may protect up to $60,000 if the property was previously owned with a now-deceased co-owner as tenants by the entireties or joint tenants with right of survivorship. There is no acreage limit; the limit is by dollar value. "Value" means fair market value less valid liens superior to the judgment lien (§ 1C-1601(b)(2)). The statute does not set an acreage limit. Source: N.C. Gen. Stat. § 1C-1601(a)(1) |
| Car exemption | Up to $3,500 in value in one motor vehicle. Value is fair market value less valid liens superior to the judgment lien. The exemption does not apply to a vehicle bought less than 90 days before collection proceedings began or the bankruptcy petition was filed, unless the purchase is directly traceable to converting exempt property (§ 1C-1601(d)). Source: N.C. Gen. Stat. § 1C-1601(a)(3) |
| Wildcard exemption | Up to $5,000 in any property, taken from any unused part of the residence (homestead) exemption. Because it comes from the unused homestead amount, a filer who uses most of the $35,000 homestead exemption has less (or none) left for the wildcard. Like the vehicle exemption, it does not apply to tangible personal property bought within 90 days before filing (§ 1C-1601(d)). Source: N.C. Gen. Stat. § 1C-1601(a)(2) |
| Retirement accounts | North Carolina exempts individual retirement plans as defined in the Internal Revenue Code, including traditional and Roth IRAs, individual retirement annuities and 408(c) trust accounts, and they stay exempt when inherited by beneficiaries through a direct transfer or eligible rollover (such as an inherited IRA). Retirement benefits under plans of other states and their governmental units are exempt to the extent the other state exempts them. Subdivision (a)(10), which had covered other retirement benefits, was repealed by Session Laws 2025-46 effective September 1, 2025. Federal law (11 U.S.C. 522(b)(3)(C)) separately protects tax-exempt retirement funds in bankruptcy. |
| Wages | The exemption list in G.S. 1C-1601 has no specific wage exemption. A separate statute says the filer's earnings for personal services in the 60 days before a court order cannot be applied to a judgment when it appears, by affidavit or otherwise, that the earnings are needed to support a family that depends wholly or partly on the filer's work. G.S. 1C-1601(f) says North Carolina's other statutory exemptions also apply in bankruptcy. |
More North Carolina bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in North Carolina?
North Carolina has opted out of the federal bankruptcy exemptions. The federal exemption list in 11 U.S.C. 522(d) does not apply to North Carolina residents; they use the exemptions in North Carolina law instead. Within state law, a filer may choose the much smaller exemptions in Article X of the North Carolina Constitution ($1,000 in a home and $500 in personal property) instead of the G.S. 1C-1601 list.
How much home equity is protected in bankruptcy in North Carolina?
Up to $35,000 in value in real or personal property that the filer or a dependent uses as a residence (including an interest in a housing cooperative), or in a burial plot. An unmarried filer age 65 or older may protect up to $60,000 if the property was previously owned with a now-deceased co-owner as tenants by the entireties or joint tenants with right of survivorship. There is no acreage limit; the limit is by dollar value.
Can I keep my car in bankruptcy in North Carolina?
Up to $3,500 in value in one motor vehicle.
Does North Carolina have a wildcard exemption?
Up to $5,000 in any property, taken from any unused part of the residence (homestead) exemption.
Are retirement accounts protected in bankruptcy in North Carolina?
North Carolina exempts individual retirement plans as defined in the Internal Revenue Code, including traditional and Roth IRAs, individual retirement annuities and 408(c) trust accounts, and they stay exempt when inherited by beneficiaries through a direct transfer or eligible rollover (such as an inherited IRA). Retirement benefits under plans of other states and their governmental units are exempt to the extent the other state exempts them.
Are wages protected in bankruptcy in North Carolina?
The exemption list in G.S. 1C-1601 has no specific wage exemption. A separate statute says the filer's earnings for personal services in the 60 days before a court order cannot be applied to a judgment when it appears, by affidavit or otherwise, that the earnings are needed to support a family that depends wholly or partly on the filer's work. G.S. 1C-1601(f) says North Carolina's other statutory exemptions also apply in bankruptcy.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.