Exemptions When You File for Bankruptcy
Bankruptcy protects some property from creditors, and in North Carolina that protection is set to increase when the amount of residential home equity protected from creditors. Many people mistakenly think their home is automatically protected from creditors, but it isn’t. The laws that protect property from creditors vary from state to state and are called exemptions. Some states have high or unlimited homestead exemptions, but other states have much lower exemptions on residential property. The new law gives homeowners a little more protection from creditor collection outside of bankruptcy, and also allows bankruptcy debtors to rest easier knowing that they might be able to file for bankruptcy without risking losing their family home.