Bankruptcy in North Carolina

North Carolina has three federal bankruptcy districts. Chapter 7 fees range from $1,000-$2,000, while Chapter 13 costs $2,500-$5,500. North Carolina has its own exemption system with no option to use federal exemptions. The state offers a $35,000 homestead exemption ($60,000 if over 65), $3,500 motor vehicle exemption, and a $5,000 wildcard exemption. These are among the more generous state exemptions in the Southeast. NC bankruptcy filings are driven by medical debt, predatory lending impacts, and student loan burdens. The state does not allow wage garnishment for most consumer debts (only taxes, student loans, and child support), which can delay the urgency of filing. Means test median income thresholds in North Carolina are approximately $53,000 for a single filer.