Tools of the Trade Exemption

An exemption allowing debtors to keep tools of their trade or professional books in bankruptcy. North Carolina's exemption provides an allowance for $2,000 in value.

Frequently Asked Questions

Our frequently asked questions also address Tools of the Trade Exemption:

Can I file bankruptcy while self-employed?

Bankruptcy is available to self-employed persons. For the most part, the bankruptcy process is the same as it is for someone who works as an employee. However, some of the general requirements of bankruptcy have particular relevance in the self employment context.

Read More ...

Blog Posts

We have discussed Tools of the Trade Exemption in the following posts on our bankruptcy blog:

Keeping Tools and Equipment in Bankruptcy

Mar 16, 2012

Can I keep my tools or business equipment? For a self-employed person, this is an important question when considering bankruptcy. Keeping your equipment is critical to keeping yourself employed in your trade. Fortunately, North Carolina provides an exemption for tools of the trade. In some cases, this exemption can very helpful for retaining tools, equipment, professional books, and other such items.

Read More ...

In Personal Bankruptcy, What Happens to My Small Business?

Aug 4, 2014

No two businesses are the same, and this diversity is echoed in the implications the personal bankruptcy of a business owner has on a small business. Nevertheless, several general points can be considered:

  1. How the small business is organized
  2. The chapter of bankruptcy relief sought
  3. What the small business is worth
  4. The nature of business operations

I will discuss each of these in turn.

Read More ...