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Instead of feeling hopeless due to overwhelming debt, file for Chapter 13 bankruptcy to ease your financial woes. Chapter 13 may be able to wipe out much of your unsecured debt without taking away your house, car, and other properties. Bankruptcy lawyers in Raleigh, NC discuss the exemptions under North Carolina law that you should maximize to start over.
Exemptions on Real Estate Properties
State laws have granted bankruptcy exemptions for real estate properties. In North Carolina, the Homestead and Burial Plot Exemption, for instance, protects around $35,000 in equity of any real estate or personal property you own.
Your exemption increases to $60,000 if you’re aged 65 or older, if the property is owned as tenants or joint tenants with the right of survivorship, or if the debtor’s spouse has died. You can also exempt up to $35,000 of equity in your burial plots if you haven’t applied your homestead exemption.
Exemptions on Other Personal Properties
The exemption includes up to $3,500 of one motor vehicle unless you bought it within 90 days of filing for Chapter 13. Other types of personal property are likewise exempted including $5,000 worth of clothing, housing goods, and appliances. Additionally, each debtor can have up to $5,000 worth of additional property that they may claim as a “wildcard”. In other words, most of your basic personal property is protected under Chapter 13.
The exemptions will also allow you to keep enough cash to pay for your living expenses, continue your livelihood, and pay for your remaining debt. Exempted are personal injury and wrongful death compensation, college savings up to $25,000, health aids, and up to $2,000 in tools or equipment used in your livelihood are part of the exemptions.
You’ll still be earning enough to make your payments and be debt-free in the future. Wages earned but unpaid for work finished 60 days before filing are likewise exempted apart from most retirement and pensions plans. All these are cash that can support living expenses. To know more, a bankruptcy lawyer in Raleigh, NC can discuss other available exemptions.
Despite significant arrears, you don’t have to lose everything if you file for Chapter 13 bankruptcy. Contact bankruptcy lawyers in Raleigh, NC who will do everything to help wipe out as much debt as possible while giving you a chance to pay remaining debts with greater ease and peace of mind.
Sources:
“Chapter 13 – Bankruptcy Basics,” USCourts.gov
“North Carolina Chapter 13 Bankruptcy Information,” NorthCarolinaBankruptcyLaw.com
“North Carolina Bankruptcy Exemptions,” Nolo.com