North Carolina bankruptcy laws
The state of North Carolina bankruptcy laws relate to an act in 2005 and are means tested to allow you to file either a Chapter 7 or Chapter 13 bankruptcy. The act allows the analysis of 6 months worth of income to be compared to the states average income for that period of time.
If you are below the states average and are unable to pay back an amount of $6,000.00, or $100.00 a week over 5 years you are able to file Chapter 7 under North Carolina bankruptcy laws. Chapter 7 is likely to be denied if you can afford to pay a sum of $10,000.00 over 5 years. If you are able to pay more than the $6,000.00 but less than $10,000.00 a determination will be made by the courts to see if you are still able to file under Chapter 7.
The North Carolina bankruptcy laws state that if you can afford to pay back 25% of your unsecured debt that is credit cards and medical costs you are likely to be denied to file a Chapter 7 bankruptcy.
Before you are able to file for bankruptcy, you must have received credit and budgeting counselling in the 6 months prior to filing. This is for either Chapter 7 or Chapter 13.
If you only qualify for a Chapter 13 ruling, you must submit a payment schedule with the filing papers. All of the payments for taxation and child support will be paid in total; unsecured debt can be paid back for as little as 10% of the owed debt.
Under North Carolina bankruptcy laws certain items of property have an exemption to all or part thereof. Your house that is used as your residence is exempt to a value of $35,000.00 or $60,000.00 if older than 65.Your employer group life policy and proceeds are also exempt and some personal property. The personal property includes crops, animals, musical instruments and books. Health aids, clothing and appliances are also exempt as is equity in a vehicle to the value of $3,500.,00. Tools needed for your employment are exempt to the value of $2,000.00. Some pensions are also exempt.