What Creditors Can't Take in North Carolina
Money, home and vehicle exemptions that protect your property from creditors in North Carolina.
Short answer: No separate bank account exemption. Money can be protected under the 'wildcard' exemption: up to $5,000 of any unused part of the residence exemption may be applied to any property. N.C. Gen. Stat. § 1C-1601(a)(2), (8), (9), (12)
| Money protected in a bank account | No separate bank account exemption. Money can be protected under the 'wildcard' exemption: up to $5,000 of any unused part of the residence exemption may be applied to any property. Retirement accounts, support payments and personal-injury compensation are also exempt. |
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| Homestead exemption | Up to $35,000 in a residence (or burial plot) used by the debtor or a dependent. An unmarried debtor 65 or older may protect up to $60,000 if the home was previously owned with a now-deceased spouse or joint owner with survivorship rights. A debtor may instead elect the smaller exemptions in Article X of the N.C. Constitution (G.S. 1C-1602). Source: N.C. Gen. Stat. § 1C-1601(a)(1) |
| Vehicle exemption | One motor vehicle up to $3,500 in value (after liens). Does not apply to property bought within 90 days before collection proceedings began (§ 1C-1601(d)). Source: N.C. Gen. Stat. § 1C-1601(a)(3) |
| Bankruptcy exemptions | North Carolina is an opt-out state: the federal bankruptcy exemptions in 11 U.S.C. 522(d) do not apply to North Carolina residents, who use North Carolina's exemptions. Source: N.C. Gen. Stat. § 1C-1601(f) |
Where to get help in North Carolina
More North Carolina debt & collections
- Statute of Limitations on Debt in North Carolina
- Wage Garnishment in North Carolina
- How to Respond to a Debt Collection Lawsuit in North Carolina
- Medical Debt Protections in North Carolina
- All North Carolina debt & collections rules
FAQ
How much money in a bank account is protected from creditors in North Carolina?
No separate bank account exemption. Money can be protected under the 'wildcard' exemption: up to $5,000 of any unused part of the residence exemption may be applied to any property. Retirement accounts, support payments and personal-injury compensation are also exempt.
What is the homestead exemption in North Carolina?
Up to $35,000 in a residence (or burial plot) used by the debtor or a dependent. An unmarried debtor 65 or older may protect up to $60,000 if the home was previously owned with a now-deceased spouse or joint owner with survivorship rights.
Can a creditor take my car in North Carolina?
One motor vehicle up to $3,500 in value (after liens).
Which bankruptcy exemptions can I use in North Carolina?
North Carolina is an opt-out state: the federal bankruptcy exemptions in 11 U.S.C. 522(d) do not apply to North Carolina residents, who use North Carolina's exemptions.
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.