Talk to a Bankruptcy Attorney
Enter Your Zip Code to Connect with a Lawyer Serving Your Area
Enter Your Zip Code to Connect with a Lawyer Serving Your Area
How to File for Bankruptcy in Tennessee
Related Ads
More and more people are struggling financially each day because of the current economy. Some states are having more difficulty coping with the economy then others and Tennessee is one of those states. There are roughly eight bankruptcy filings for every one thousand Tennessee residents, which leaves Tennessee with the second highest bankruptcy rating in the country. With all the new bankruptcies being filed, there has been a “means” test established to help ensure that those who are filing are actually financially eligible for bankruptcy. How do you know if you are eligible and if bankruptcy is the best option your financial situation?
Finding a Bankruptcy Attorney
A bankruptcy attorney can assist you with both the financial and legal help you will need to determine if bankruptcy will work for you, as well as aid you in the filing process. The attorney will be able to ensure that your exemptions are maximized and that your financial situation is represented clearly to the bankruptcy trustee. Because of the crucial role that an attorney will be playing in your bankruptcy case, it is essential that he/she have experience and a good reputation.
Bankruptcy Options
Every bankruptcy case is unique and that is why there are multiple types of bankruptcy code for you to consider:
- If you have very few or no assets, then Chapter 7 of the bankruptcy code will allow you to liquidate any assets you may have and give you a fresh start with no debt.
- If you have one or more valuable assets that you are not willing to part with, then Chapter 13 may fit your situation better. Chapter 13 sets up a plan to have all your debts paid off within three to five years.
Tennessee Exemptions
One of biggest concerns when filing for bankruptcy is protection of assets. Exemptions allow for some of your assets to be retained even if you decide to file. In Tennessee, you are not allowed to utilize the federal exemption list and so you must solely rely on the state’s exemption list:
|
Homestead |
$5,000; $7,500 for joint owners. Tenancies by the entirety are exempt without limit as to debts of one spouse. Spouse or child of deceased owner may claim. May also claim a life estate or a 2 to 15 year lease. If over 62 years of age, $12,500 for single people and $20,000 for married people; $25,000 if spouse is also over 62 years of age. |
|
Personal Property |
$4,000 of any personal property; clothing and storage containers; schools books, pictures, portraits, and bible; health savings accounts; health aids; lost earnings payments for yourself or a person you depended upon; personal injury recoveries up to $7,500; wrongful death recoveries up to $10,000 (LIMIT total of personal injury claims, wrongful death claims, and crime victims' compensation cannot exceed $15,000); burial plot up to 1 acre. |
|
Wages |
The greater of the following: 30 times the federal minimum hourly wage or minimum of 75% of disposable weekly income, plus $2.50 per week per child. Judge may approve more for low income debtor. |
|
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person; public employees; state and local government employees; ERISA-qualified benefits; teachers. |
|
Public Benefits |
Relocation assistance payments; unemployment compensation; veterans' benefits; Social Security; local public assistance; crime victims' compensation up to $5,000; workers' compensation; old-age assistance; aid to blind; aid to disabled. |
|
Tools of the Trade |
Tools, books, and implements of trade up to $1,900. |
|
Insurance |
Disability, accident or health benefits for a resident and citizen of Tennessee; disability or illness benefits; life insurance or annuity; fraternal benefit society benefits. |
|
Miscellaneous |
Alimony and child support which is owed for at least 30 days prior to filing for bankruptcy; educational scholarship trust funds and prepayment plans. |
Filing the Petition
After establishing the best type of bankruptcy for your situation and the exemptions that you will be, taking advantage of, your attorney can help you file the petition for bankruptcy with the court. The bankruptcy trustee will likely arrange a 341 meeting so that any of your creditors’ questions about payments and other related issues can be answered. If your petition for bankruptcy is approved, you will then be able to walk away debt-free (Chapter 7) or start working to that end within just a few years (Chapter 13).
This article is provided for informational purposes only. If you need legal advice or representation,
click here to have an attorney review your case .
click here to have an attorney review your case .
Get Informed About Bankruptcy Law
Popular Topics
Chapter 7 Bankruptcy - Learn about the most common type of Bankruptcy.
Chapter 13 Bankruptcy - Options for homeowners and filers with high income.
Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
Your Home in Bankruptcy - If you're a homeowner, find out what happens to your house.
Your Car in Bankruptcy - Learn about your options to keep (or surrender) your car.
Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
Chapter 13 Bankruptcy - Options for homeowners and filers with high income.
Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
Your Home in Bankruptcy - If you're a homeowner, find out what happens to your house.
Your Car in Bankruptcy - Learn about your options to keep (or surrender) your car.
Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
Get Professional Legal Help
