Legal Question in Bankruptcy in North Carolina

It depends. You are in control to determine what property you keep. There are two ways you are permitted to keep property. First, in a Chapter 7, which is a straight bankruptcy or liquidation, you keep property which you deem to be exempt. If married joint filers qualify for NC exemptions, the debtors can exempt up to $35,000 equity (value less secured debt) each in real estate. In the event the filers do not exhaust all of the real estate exemption, as much as $5,000, each, will spill over to the wild card exemption which applies to any property. There are other exemptions for household goods, wages, and others. In a Chapter 13, which is a wage earners plan which allows for partial or full repayment of debts over a 3-5 year period; the debtor has the same exemptions, but also can keep more value by pay in the surplus amount as the repayment plan. Of course, if you can delay the gift for more than 6 months after the close of the bankruptcy case, it does not become part of the estate. The best way to manage a financial situation is to consult bankruptcy counsel. It is necessary for the lawyer to know the full financial picture as well as all of the details respecting the "gift".