What is property exempt from bankruptcy in Tennessee?

If you are thinking of filing for bankruptcy you are probably wondering if you will lose everything. Hopefully, you will find comfort in knowing that Tennessee allows numerous exemptions, which will allow you to keep a lot of your belongings.

Tennessee bankruptcy law aims to help people protect their homes by way of the homestead exemption. This provides protection that varies in amount based on a person’s circumstances. For example, a residence that is jointly owned is subject to $7,500 worth of protection, but a homeowner with minor child receives $25,000 worth of protection.

$1,900 worth of occupational materials, or tools of trade, are protected. Many items can be classified under this category. For example, a landscaper may claim a lawn mower, a saw, and a work truck. A person is also allowed to keep at least 75 percent of her disposable income. The presiding judge is allowed to increase this amount when dealing with low-income debtors.

Other types of income that are exempt include alimony and child support that was due more than 30 days before filing for bankruptcy. Certain government issued benefits are exempt including Social Security, Unemployment, and Aid to the Blind. People are also able to retain benefits such as life insurance and disability payments.

The Wild Card will allow you to keep more of your personal property. This exemption allows Tennessee bankruptcy filers to retain $4,000 worth of personal items of their choice.

Even beyond these, you may be eligible for other exemptions in Tennessee. Keeping as much of your property as possible is a legitimate desire. To make sure you do not experience unnecessary losses, it is best to consult with a bankruptcy attorney before filing.