What property will I lose in bankruptcy?

What property, if any, you will have to turn over to your creditors depends on a few factors. First, you are entitled to certain property allowances called exemptions. Most debtors in North Carolina will be able to claim North Carolina statutory exemptions. Elsewhere on this site, these numerous exemptions are discussed in detail, but examples would include $35,000 in value for a homestead and $3,500 in value in a car. Furthermore, in a chapter 13 repayment plan, you do not have to turn over property worth more than the allowances if you pay the extra value into the plan from another source, such as future wages.

Value for claiming an exemption is the net value after subtracting the debt associated with the item. For example, if you own a car with a resale value of $5,000, on which you have a car loan with $3,000 remaining to paid, that car has a net value of $2,000, and you would be able to exempt in with the NC motor vehicle exemption. It's important to note that this exemption doesn't mean the car loan doesn't have to be paid, it just means that the car will not be taken and sold to benefit other creditors such as a credit card company.