North Carolina Bankruptcy laws
Bankruptcy laws were designed to protect both the debtor and the creditor. However, it has been shown that from time to time, there are debtors who take advantage to avoid repayments of debts. The amendments to the Federal bankruptcy laws of 2005 did affect the North Carolina laws too but benefited both debtors and creditors.
Bankruptcy Exemptions for North Carolina:
Like other States of New York and New Mexico, North Carolina has special exemptions on claims of a creditor on your property. This is included in Chapter 7 and 13 of the bankruptcy laws of North Carolina. These are designed to protect the debtor from completely loosing livelihoods but also to have feasible debt repayment plan that guarantees the creditor.
Chapter 7 Bankruptcy Law for North Carolina:
This is usually a very direct form of chapter 7 bankruptcy laws . It can either be voluntary or involuntary depending on whether it is instituted by a debtor or creditor responsibility. In North Carolina, this law may provide limited restrictions on what cannot be disposed by the creditor to recover debt. These include homestead to the value to $35,000, tools of traded to the tune of $2,000.
Chapter 13 Bankruptcy Law for North Carolina:
Where you have a regular income from employment, the Chapter13 bankruptcy laws in North Carolina bankruptcy allows you to agree before a court on a debt settlement plan. This often involves repaying the debt over a period of not more than 5 years on fixed monthly deposits. Even in this case, the total amount recoverable by creditor cannot include the life assurance, retirement or health aid. Therefore one cannot use these means of income to settle debt under the North Carolina bankruptcy laws. The bankruptcy laws that were revised in 2005 also measures to determine admissibility of a chapter 7 case, failure to which chapter 13 may be applied for individuals or companies.
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