Learning About Exemptions Through A Bankruptcy Attorney In Huntersville, NC

by | Mar 20, 2014 | Lawyers & Law Firms

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Consumers who wish to eliminate debt should consult a Bankruptcy Attorney in Huntersville NC to learn about local laws. A chief difference between North Carolina bankruptcy laws in comparison to other states is that they do not allow consumers to utilize the federal bankruptcy exemptions. It allows the consumer to exempt the full value of the asset. However, the federal homestead exemption for equity accumulated is no more than $22,975. This is significantly less than the North Carolina homestead exemption which is a maximum of $35,000 for consumers and $65,000 for seniors over 65.

Doubling Your Exemptions
Married couples receive further exemptions in North Carolina. Any jointly owned property is claimable in each consumer’s bankruptcy. This is a process known as doubling in which the property is protected at a higher value, and the consumers receive two times the exemption benefit. However, if the couple owned the property for at least three years, the allowed exemption cannot exceed $155,675. The consumers cannot utilize doubling concepts for rental houses, condominiums, or apartment complexes in which they own. Any properties that are registered in both consumers’ names are not eligible.

Automobiles
As a Bankruptcy Attorney in Huntersville NC can tell you, the allowed state exemption for automobile-based equity is $3,500. Consumers who have owned the automobile for ninety days or less are eligible for this exemption. When equity exceeds $3,500, the consumer can utilize the wildcard exemption which allows the application of any unused amount of the homestead exemption.

This equates up to $5,000 in equity for his or her vehicle. The additional $500 personal property exemption is applicable and accessible to lower the value of equity and afford the owner with the ability to keep the automobile. Married couples receive up to $7,000 exemptions; their property and wildcard exemptions are additionally doubled.

Personal Property
A Bankruptcy Attorney at Lake Law Office, PLLC explains to the consumer details in regard to which personal properties are included as exemptions. For example, compensation received for accident injuries that are not connected to North Carolina Statute 1C-17601(a) (10) are exempt. The exemption further extends to any wrongful-death proceeds, qualified college savings accounts, and personal belongings such as clothes and furniture. Consumers who wish to explore these bankruptcy options should contact The Lake Law Office, PLLC.

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