Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In North Carolina, bankruptcy exemptions play a crucial role in determining which assets you can protect from creditors when you file for bankruptcy. North Carolina does not allow debtors to use the federal bankruptcy exemptions; instead, debtors must use the state's specific exemptions. These exemptions include, but are not limited to, a certain amount of equity in your residence (homestead exemption), personal property, tools of the trade, insurance, pensions, public benefits, and wages. The exact amounts and types of exemptions are updated periodically, so it's important to consult the current North Carolina statutes or an attorney for the most up-to-date information. Additionally, married couples filing jointly in North Carolina may double the exemption amount for any property that they own together. It's essential to carefully assess which exemptions apply to your situation, as they will directly impact what property you can retain through the bankruptcy process.