Legal Question in Credit and Debt Law in North Carolina

The household contents exemption for all debtors is $5,000.00 actual cash value plus $1,000.00 for each dependent. It does not increase at age 65.

I don't do bankruptcy, but it is related to what I do and I would agree with Attorney Coleman here. The NC bankruptcy exemptions are the same as for a regular NC judgment. You can exempt generally up to $30,000/$35,000 equity in real property, $3,500 in one motor vehicle, $5,000 in personal items (like household furnishings, your clothes etc.), $1,000 for each dependent (up to a maximum of $4,000) and a $5,000 "wild card" (but only if you exempted $30,000 in real property and saved the extra $5,000 for your wild card) and some others, like retirement/pension, 529 plans, life insurance and so on. While the exemptions don't increase regardless of your age, the real property exemption may if you are over 65 and UNMARRIED. In such case (which does not seem to apply to you as you indicate you have a living spouse) then you can exempt to $60,000 where you previously were married and owned land jointly with your spouse who died.

If you are 65 and are on Social Security, it depends on what else you have and what kinds of debt you have. If you are serious about bankruptcy, definitely get a consult with a bankruptcy attorney in your area. However, you have to look at the kinds of debt you have, the amount of debt you have and your assets. While your spouse need not file, she may have to if you have medical debt or else she may be responsible for it. If all your assets are exempt and your income is exempt too, then maybe you don't need to file bankruptcy at all.

If you are unclear, by all means consult a bankruptcy attorney. Many attorneys give free consults. Find an attorney who does and use it to educate yourself about bankruptcy. I have some helpful links on my website at www.rachelhunterlaw.com just to give yourself a brief education. If you are not sure, please contact me at [email protected]. While an email will not act as a substitute for a bankruptcy consult, I should be able to give you an overall idea as to whether filing or not may be a good option for you. Generally, if you will be needing credit in the future, if you have over $10,000 in dischargeable debt (things like student loan debt, child support or some taxes) and if you can file a chapter 7 and be done, then bankruptcy may be an option for you. The bankruptcy court has been means-testing people - if you receive too much income, then you cannot file a chapter 7. In such case, it might be wise to consider other alternatives to bankruptcy. Hope this helps!