Bankruptcy and Judgments: What are the State Exemptions for Tennessee?
If you are considering filing for Chapter 7 Bankruptcy in the state of Tennessee, or if you are being sued by creditors (perhaps you already have a judgment against you), you will need to familiarise yourself with the state exemptions. Bankruptcy exemptions are state laws that distinguish your property as “off limits” to unsecured creditors. This means that these types of creditors cannot force you to sell your property to cover debts.
Although there is a Federal Bankruptcy Code, which provides a list of exemptions, bankruptcy laws do differ from state to state. This means that some exemptions listed on the Federal Bankruptcy Code may not apply in some states.
This is certainly the case in Tennessee, where state law requires anyone filing for bankruptcy to use the state exemptions listed in state law – not the Federal bankruptcy exemptions. The only Federal exemptions available to individuals are “non-bankruptcy” ones – i.e. those exemptions found in Federal laws, but not in the Federal Bankruptcy Code.
So, what are the state exemptions for Tennessee for judgments and bankruptcies?
- Most importantly, there is a homestead exemption for Tennessee residents, although it isn’t very much. This means that you can protect the equity you have in your family home. Single homeowners are entitled to $5000, whereas joint owners can claim $7500. These amounts vary again if you have dependent children or are over the age of 62. However, these exemptions only apply if you have been living in Tennessee for more than two years. If you have recently moved to Tennessee, you may be required to claim exemption under the laws of your previous state of residence.
- You can also claim a wage garnishment exemption. This limits how much creditors can collect from your wage. In Tennessee, you are entitled to keep 75% of your wage or 30 times the federal minimum hourly rate – whichever is greater.
- Other state exemptions for Tennessee include a ‘tools of the trade’ exemption up to $1900, which covers those tools used for work purposes, certain personal property exemptions, life insurance and pension and retirement savings exemptions.
If you are being sued by your creditors, the exemptions are those items that you won’t be forced to sell. When filing for bankruptcy in the state of Tennessee, it is very important to familiarize yourself with the precise exemptions you are entitled to claim. This will ensure that as much of your property, income, savings and assets are protected and remain yours to keep.
Reference: Legal Consumer: Tennessee Bankruptcy and Law Information http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?ZIP=37398&ST=TN&CBSA=46100&FEDCT=TNE&CITY=Winchester&METRO=Tullahoma
Related posts:
- Bankruptcy and Judgments: What are the State Exemptions for South Dakota?
- Bankruptcy and Judgments: What are the State Exemptions for Pennsylvania?
- Bankruptcy and Judgments: What are the State Exemptions for Rhode Island?
- Judgments and Bankruptcy: What are The State Exemptions for Alabama?
- Judgments and Bankruptcy: State Exemptions for California
