NC Bankruptcy Laws
Find out about the bankruptcy laws in North Carolina.
North Carolina offers many of the same bankruptcy laws that are provided by the other forty-nine states. NC bankruptcy laws provide people seeking debt with options to alleviate their financial burdens. These laws are very similar to the same laws in other states, because of federal regulations. When debtors decide on filing for bankruptcy they have the same option of filing a Chapter that suits their financial needs. The United States controls this process so that people can efficiently and systematically file for bankruptcy. However, there are some differences in the NC bankruptcy laws compared to other states. This is because of the fact that the federal government allows individual states to decide the details of personal exemptions.
NC Bankruptcy laws allow two different processes for people to file individual bankruptcy. You can either choose to file Chapter 7, or Chapter 13 bankruptcy. These are both fairly similar, and allow debtors to have options when trying to sort out their finances. Generally with a Chapter 7 bankruptcy, people have to liquidate most of their assets. However, thanks to NC bankruptcy laws, the state protects most of these assets. There is up to a $35,000.00 dollar exemption of property that can be used as a residence. There are also 60 days of wages that can be used. You can even keep a car that is valued at up to $3,500.00 dollars. You can even keep up to $5,000.00 dollars of personal property. These are laws that are specific to North Carolina, and vary from state to state.
NC Bankruptcy laws don’t really affect the proceedings of Chapter 13 bankruptcies. During a Chapter 13 bankruptcy individuals can set up payment plays to pay back some of their debt. This allows people to maintain ownership of most of their property, while restructuring their debt payment plans. This Chapter 13 bankruptcy option offers more protection for property, as well as homes and cars. Every state varies a little differently when it comes to individual allowances regarding assets and exemptions. To find out more information about North Carolina, you can consult experts, and other educational resources.