NORTH CAROLINA

Has state opted out of federal bankruptcy exemptions? Yes. N.C. Gen. Stat. § 1C-1601(f).

Is opt out limited to residents or domiciliaries of the state? Yes. N.C. Gen. Stat. § 1C-1601(f): “The exemptions provided in [§ 522(d)], are not applicable to residents of this State. The exemptions provided by this Article and by other statutory or common law of this State shall apply for purposes of [§ 522(b)].”

Do state’s exemptions have extraterritorial application?

Homestead: No. See In re Owings, 140 F. 739 (E.D.N.C. 1905).

Personal property: Uncertain.

Wages: N.C. Gen. Stat. § 1-362.

Scope: Earnings for personal services within 60 days before date of court order.

Amount: Exempt to the extent needed for family support.

Survival after payment/deposit: Not specified in exemption statute.

Waiver: Not specified in exemption statute.

Homestead: N.C. Const. art. X, § 2; N.C. Gen. Stat §§ 1C-1601(a)(1), 1601(e).

Amount: $35,000 (for unmarried debtor over age 65, who formerly owned the property in tenancy by entireties or joint tenancy with person now deceased, $60,000) in residence consisting of real or personal property, including a cooperative, subject to certain liens and support claims. N.C. Gen. Stat. §§ 1C-1601(a)(1), 1C-1601(e).

Procedural requirements: None specified in exemption statute.

Special provisions: Exemption survives for the benefit of minor children and unremarried spouse. N.C. Const. art. X, §§ 2(2), 2(3). Sale or encumbrance of homestead requires signatures of both spouses. N.C. Const. art. X, § 2(4).

Waiver: Exemptions may not be waived before judgment, except by transfer of the property concerned. Waiver after judgment must be in writing and approved by court clerk or judge. May also be waived by failure to claim, after being notified to do so.³ N.C. Gen. Stat. § 1C-1601(c).

Tangible personal property: N.C. Gen. Stat. § 1C-1601.

Household goods: $5000 for debtor plus $1000 per dependent up to an additional $4000. Includes furniture, books, musical instruments, clothing, animals, crops. N.C. Gen. Stat. § 1C-1601(a)(4).

Motor vehicles: $3500. N.C. Gen. Stat. § 1C-1601(a)(3).

Tools of trade: $2000. N.C. Gen. Stat. § 1C-1601(a)(5).

Clothing and jewelry: Clothing included in household goods exemption.

Miscellaneous and wildcard: Unused homestead exemption, up to $5000. N.C. Gen. Stat. § 1C-1601(a)(2). Professionally prescribed health aids. N.C. Gen. Stat. § 1C-1601(a)(7).

Waiver: Exemptions may not be waived before judgment, except by transfer of the property concerned. Waiver after judgment must be in writing and approved by court clerk or judge. May also be waived by failure to claim, after being notified to do so. Exemptions will apply to household goods, notwithstanding any non-purchase money security interest. No exemption for tangible property purchased within 90 days before initiation of collection proceedings or filing of bankruptcy, unless the property was purchased solely with the proceeds of exempt property. N.C. Gen. Stat. §§ 1C-1601(c), 1C-1601(d).

Benefits, retirement plans, insurance, judgments, and other intangibles: N.C. Const. art. X, § 5; N.C. Gen. Stat. § 1C-1601.

Public benefits: Not specified in exemption statute.

Pensions, retirement plans, and annuities: Certain tax-qualified retirement plans, including inherited plans. N.C. Gen. Stat. §§ 1C-1601(a)(9), 1C-1601(a)(11).

Insurance, judgments, or other compensation for injury: Life insurance for the benefit of spouse or children is exempt as to debts of the insured. N.C. Gen. Stat. § 1C-1601(a)(6); N.C. Const. art. X, § 5. Compensation for personal injury of debtor or person on whom debtor dependent, or wrongful death of person on whom debtor dependent (except as to claims for medical, legal, funeral, or other services arising from the accident that gave rise to the claim). N.C. Gen. Stat. § 1C-1601(a)(8).

Bank accounts: Tax-qualified college savings account, cumulative limit of $25,000. Does not apply to payments within preceding 12 months, unless these were consistent with past pattern of contributions. N.C. Gen. Stat. § 1C-1601(a)(10).

Alimony, child support: Alimony and separate maintenance to the extent needed for support of debtor and dependents. N.C. Gen. Stat. § 1C-1601(a)(12).

Tax refunds: Not specified in exemption statute.

Survival after payment or deposit: Not specified in exemption statute.