National Divorce & Bankruptcy Center

Tennessee Bankruptcy Property Exemptions:
What You Can Keep

Back to Main Bankruptcy Page | State Bankruptcy Exemptions | main page
To print out the exemptions: Simply "click" on your browser's "print" icon (Select All)

EXEMPT PROPERTY: The property you can keep after bankruptcy.

Some property in many states is exempt regardless of its value i.e. "all personal possessions". Many states also have a 'wild card' exemption which can be applied to any type of property or split among several different items.

An exemption limit means that any equity above the limit is 'non-exempt'. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $4000 with a lien of $3500 has an equity value of only $500 subject to exemption.

To keep non-exempt property, a debtor must generally pay the trustee the value of the non exempt property to be distributed to creditors.

Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions doubling the exemptions. Unless otherwise noted in the following exemption list, married couples may double the exemption amount given.

Note: the value of property for bankruptcy exemption purposes has been generally accepted to be the Garage sale value of the property 

TENNESSEE  State
Exemptions  (for bankruptcy)

Only the Tn. state exemptions are available to residents - Federal exemptions not allowed.

Homestead  $5,000 for a single; $7,500 for joint owners
          Life estate
          2-15 year lease
          Spouse or child of deceased owner may claim homestead exemption
          Property held as tenancy by the entirety may be exempt against debts owed by
               only one spouse.
Insurance:     Disability or illness  benefits
          Fraternal benefit society benefits
          Accident, health or disability benefits for a resident and citizen of Tn.
          Homeowners' insurance proceeds to $5,000

Miscellaneous Alimony owed for 30 days before filing for bankruptcy
          Property of business partnership

Pensions  Public employees
          ERISA qualified benefits
          State and local government employees
          Teachers
                    
Personal  Bible, schoolbooks, pictures, portraits, clothing and storage containers
Property  Burial Plot, to 1 acre
          Health aids
          Lost earnings payments for you or person you depended on 
          Personal injury recoveries to $7500(not to include pain and suffering); wrongful
          death recoveries to $10,000 (you can't exempt more than $15,000 total for
          personal injury, wrongful death and crime victims compensation)

Public    AFDC (Aid to Families with Dependant Children)
Benefits  Aid to blind and Aid to Disabled
          Crime victims' compensation to $5,000 (see personal property above)
          Unemployment compensation
          Worker's Compensation
          Local public assistance
          Old age assistance; Social Security; and Veterans' benefits 
          
Tools of  Tools, implements, books to $750
Trade     

Wages     Minimum 75% of earned but unpaid wages, + $2.50 per week per child;   
               bankruptcy judge may authorize more for low income debtors.
Wild Card $4,000 of any personal property