Chapter 7 Bankruptcy Lawsuit in North Carolina

North Carolina Chapter 7 Exemptions

North Carolina is an opt-out state, so a North Carolina debtor may not elect the federal Section 522(d) exemptions and must use the North Carolina state set (N.C. Gen. Stat. Section 1C-1601). (Source: Nolo, North Carolina Bankruptcy Exemptions.)

Homestead, Vehicle, and Wildcard

North Carolina's homestead exemption is $35,000, rising to $60,000 if the debtor is 65 or older and a former co-owner spouse is deceased (N.C. Gen. Stat. Section 1C-1601(a)(1)). One motor vehicle is protected up to $3,500, but not a vehicle bought within 90 days of filing (Section 1C-1601(a)(3)). The wildcard is up to $5,000 of unused homestead or burial exemption applied to any property (Section 1C-1601(a)(2)). North Carolina also allows $5,000 in personal property plus $1,000 per dependent (maximum $4,000 added) under Section 1C-1601(a)(4). (Source: Nolo, North Carolina Bankruptcy Exemptions.)

Means Test: North Carolina Median Income

The Chapter 7 means test compares a debtor's six-month average gross income to the state median family income for the household size. For North Carolina, the U.S. Trustee median family income for a household of four is $116,737 (U.S. Trustee median family income, eff. April 1, 2026; smaller households use lower figures). Below-median filers are generally not presumed to be abusing Chapter 7; above-median filers complete Form 122A-2. (Source: U.S. Trustee Program, justice.gov/ust.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in North Carolina for the 730 days before filing to use North Carolina's exemptions; otherwise an earlier state's set or the federal exemptions may apply.

To compare your six-month income against the North Carolina median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property North Carolina exemptions might protect, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.

Exemption amounts change — verify current figures with an attorney. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency.