How to Claim Bankruptcy in North Carolina
- 1). Attend credit counseling with a government-approved credit counseling agency. The debtor should be informed on the bankruptcy process and make sure he knows of alternatives to filing for bankruptcy. The court ensures this requirement has been met when the debtor files the certificate of credit counseling he received from the credit counseling session.
- 2). Take the means test. Compare your family income to the median family income for the state of North Carolina. As of 2010, the Census Bureau listed North Carolina's median incomes as $38,656 for a single earner; $52,008 for a family of two; $56,727 for a family of three; and $67,056 for a family of four. Add $7,500 for each family member in excess of four. If your family income is less than the state median, you can file for Chapter 7 and skip to Step 4.
- 3). Calculate monthly disposable income by deducting allowed monthly expenses from monthly income. If your monthly disposable income is less than $100, you can file for Chapter 7. If your monthly disposable income is more than $100, and that amount would not pay at least 25 percent of your debts over the next 60 months, you can file for Chapter 7. Otherwise, you may need to file for Chapter 13 bankruptcy and repay your debts for the next three to five years.
- 4). File your bankruptcy petition in the bankruptcy court serving your district with your $299 filing fee. You should also file schedules of income and expenditures; assets and liabilities; unexpired leases and executory contracts; and a statement of financial affairs.
- 5). Claim exemptions. After you have filed your bankruptcy petition with the bankruptcy court, a trustee will be appointed to your case. The trustee has the task of separating your exempt property from your non-exempt property. The trustee will sell all non-exempt property to pay your creditors. You can keep all exempt property. North Carolina lists the following property as exempt: real or personal property used as a residence up to $18,500; motor vehicle up to $3,500; health aids; clothing, household goods, furniture, appliances, books, animals, musical instruments and crops up to $5,000 total, plus an additional $1,000 per dependent up to $4,000 total; certain civil recoveries; college savings account up to $25,000; wages; pensions; public benefits; tools of your trade; insurance; alimony and child support. Refer to state laws for a complete list.